US Fed's Kashkari: rates hikes are too aggressive

Joshua Gibson FXStreet

According to an interview with US Federal Reserve Bank of Minneapolis President Neel Kashkari, a high-powered dove within the US Federal Reserve system, the US' current pace of interest rate hikes is too aggressive and could lead to negative knock-on effects.

Key quotes

"It could be a spark in emerging markets like we're seeing in Turkey … that could potentially trigger a crisis of confidence, and could spill over globally into the U.S.

It could be something coming from the trade battles that are being taken right now.

It also could be done by us -- it could be done by the Fed raising interest rates -- when the economy can't sustain it

I've also been saying that we're raising interest rates too aggressively. We might keep raising interest rates, and the economy can't take it, and we put the country into recession."

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD remains offered near 1.1640

EUR/USD’s selling pressure now picks up pace, trimming part of its post-US CPI gains and drifting back toward the 1.1640 area on turnaround Tuesday. Meanwhile, the US Dollar edges higher as markets continue to digest December’s US inflation data.

GBP/USD recedes to 1.3430, daily lows

GBP/USD now comes under extra downside pressure, drifting lower toward the area of daily troughs around 1.3430 on Tuesday. Cable’s pullback mirrors the soft tone in the risk complex, all in response to the better tone in the Greenback in the wake of December’s US CPI release.

Gold begins a new record run

Gold shrugs off early gains to fresh record highs above $4,630 per ounce on Tuesday, and returns to the vicinity of the $4,600 region amid further improvement in the US Dollar and declining US Treasury yields following the release of US CPI data.

Privacy coins set to take the lead in 2026 as regulation accelerates demand for on-chain anonymity

The segment of privacy coins outperforms the broader cryptocurrency market, with a roughly 290% rise in 2025. The rising user count on the cryptocurrency tumbler Tornado Cash amid regulatory pushes, such as the 2025 GENIUS Act, reflects a surge in demand for privacy.

More pressure on the Federal Reserve emerges

News broke on Sunday night that the Federal Reserve received grand jury subpoenas from the Department of Justice on Friday, escalating the Trump administration's pressure on the nation's central bank.

XRP consolidates above $2.00 as on-chain and derivatives activity decline

Ripple (XRP) is trading sideways above support at $2.00 at the time of writing on Tuesday. Recovery has remained elusive despite steady inflows into spot Exchange Traded Funds (ETFs), which have cumulatively attracted $1.23 billion.