August 15, 2019 / 10:08 PM / 4 months ago

Fed's Kashkari says he is leaning toward further rate cuts

FILE PHOTO: President of the Federal Reserve Bank on Minneapolis Neel Kashkari speaks during an interview in New York, U.S., March 29, 2019. REUTERS/Shannon Stapleton

(Reuters) - Calling economic and financial market signals for the economic outlook “mixed,” Minneapolis Federal Reserve Bank President Neel Kashkari signaled on Thursday that he is likely to support further reductions in U.S. interest rates to support growth.

Trade tensions are making businesses cautious, he said, and the inversion of the U.S. yield curve that this week sent global stocks plummeting “is an indicator that people are nervous.” At the same time, the jobs market is strong, and so is consumer spending.

As Fed policymakers gear up for their September rate-setting meeting, he said, they will be assessing all of the data to make a decision. “I am leaning towards the camp of, ‘yes we need to give more stimulus to the economy, more support, we need to continue the expansion and not allow a recession to hit us,’” he said.

Reporting by Ann Saphir; Editing by Chris Reese

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