Fed's Kashkari expects two more rate cuts this year, labor market risks may be greater than inflation risks.

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, expressed his support for the Federal Reserve's decision to cut interest rates this week, and included in his personal forecast two more rate cuts this year. "I believe the risk of a significant increase in unemployment is enough to prompt the committee to take action to support the labor market," Kashkari wrote in an article published on his Federal Reserve website on Friday. Federal Reserve officials lowered interest rates by 25 basis points at their meeting on Wednesday, the first rate cut since December last year, citing the need to support a more fragile job market. The Minneapolis Fed chief does not have voting rights on monetary policy this year, but participates in discussions at the Federal Open Market Committee. Previously, he expected a total of two rate cuts by 2025. The Federal Reserve will also hold policy meetings in October and December this year. Kashkari added that the Fed should not "preset a predetermined path of rate cuts." If the labor market shows more resilience than it currently appears, or if inflation rises, he would support keeping rates steady; if the economic situation requires it, he may even consider raising rates.