Fed's Kashkari: Judgment call on whether we move in 50 or 75 bps increments on rates

Eren Sengezer FXStreet

Minneapolis Fed President Neel Kashkari said on Wednesday that they will have room to assess the economy by moving rates at an "aggressive but not overwhelming" pace, as reported by Reuters.

Key takeaways

"There may be a housing downturn, but not necessarily a hard crash."

"Tremendous uncertainty about fundamentals of US economy."

"A judgment call on whether we move in 50 or 75 bps increments on rates."

"We have to deliver what we said we would do on rates."

"That's the only way to validate medium and longer-term inflation expectations."

Market reaction

These comments don't seem to be having a significant impact on the dollar's performance against its major rivals. As of writing, the US Dollar Index was up 0.1% on the day at 113.40.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD faces the next support around 1.1600

EUR/USD comes under pressure and retreats for the fourth day in a row on Tuesday, coming closer to the key 1.1600 neighbourhood amid a decent rebound in the US Dollar ahead of the largely expected 25 basis point rate cut by the Federal Reserve on Wednesday.

GBP/USD extends mean reversion as investors brace for Fed

GBP/USD eased back toward the midrange on Tuesday, shedding around one-fifth of one percent after facing an intraday technical rejection from the 1.3350 level. Price action has slumped back into the 1.3300 handle and is holding just north of the long-term 200-day Exponential Moving Average near 1.3250 as markets hunker down for the last Federal Reserve (Fed) interest rate decision of 2025.

Gold declines to near $4,200 as traders await hawkish cut from Fed

Gold price trades in negative territory near $4,210 during the early Asian session on Wednesday. The precious metal edges lower as traders expect the Federal Open Market Committee to take a hawkish approach to future easing of monetary policy at its upcoming policy meeting on Wednesday.