Fed’s Kashkari Warns Drastic Rate Cuts Would Stoke Inflation

Federal Reserve Bank of Minneapolis President Neel Kashkari on Tuesday cautioned that any drastic cuts to interest rates would risk stoking inflation.

“You would expect to see the economy have a burst of high inflation,” Kashkari said Tuesday during a panel discussion on artificial intelligence and the economy hosted by the Minnesota Star Tribune. “Basically, if you try to drive the economy faster than its potential to grow and its potential to produce prices, you end up just going up across the economy.”