Interest Rate Cut, Breaking News! US Stocks and Gold Soar Across the Board! Sudden Change in Chinese Concept Stocks! What’s Happening?

Kashkari pointed out that although the market has been expecting an economic slowdown for the past two years, the resilience shown by the U.S. economy has far exceeded expectations.

He believes this suggests that the current monetary policy is not as restrictive on the economy as previously thought, and interest rates may already be in a neutral zone that neither stimulates nor suppresses economic growth.

He emphasized that the Federal Reserve currently faces two risks: on one hand, long-term inflationary pressures that may result from tariff policies, which could take years to fully materialize; on the other hand, the risk of a sudden rise in the unemployment rate.

He stated that the Federal Reserve needs more data to determine whether inflation or the labor market is the more significant influencing factor, thus guiding future policy direction.

In addition, he believes that the risks from the situation in Venezuela are mainly transmitted through oil prices, but so far, such effects have not been observed.