MNI BRIEF: Fed Could Wait Until 2025 To Lower Rates - Kashkari

Minneapolis Federal Reserve President Neel Kashkari on Thursday said the central bank will need to be patient and wait until convinced inflation is falling to target, potentially waiting until 2025 to lower rates.

"Ultimately, we know what we need to do. We need to get inflation back down to 2%," he said in an interview with Fox News. "Once we get closer to it, we will be in a position to start dialing back some of our interest rate increases." (See: MNI INTERVIEW: Fed Only Likely To Cut Once This Year- Giannoni)

"We just need to sit here and be patient," he added, noting the strong economy and a strong labor market. Asked whether that means waiting until 2025, Kashkari said: "Potentially. I had dialed in March two interest rate cuts this year ... That was before some of the data that we've seen. I am of the view that we need to wait and see and be patient, as long as it takes."