Fed’s Kashkari Says Rates to Decline ‘Modestly’ in 2025

Federal Reserve Bank of Minneapolis President Neel Kashkari said he expects inflation will continue to cool toward the central bank’s 2% target, allowing policymakers to lower interest rates “modestly” by the end of the year.

“We’re in a very good place to just sit here until we get a lot more information on the tariff front, on the immigration front, on the tax front,” Kashkari said Friday in an interview on CNBC. “I would expect the federal funds rate to be modestly lower at the end of this year.”

Neel Kashkari, president and chief executive officer of the Federal Reserve Bank of Minneapolis.

Photographer: Anita Pouchard Serra/Bloomberg

Echoing recent comments from other policymakers, Kashkari said there’s still ...