Federal Reserve's Kashkari: Inflation risks in the U.S. still exist, and a rate cut may occur again in December

According to the Zhitong Finance APP, Minneapolis Federal Reserve President Neel Kashkari stated on Sunday that while the Federal Reserve has made progress in curbing inflation, the U.S. economy remains strong, but the Fed is "not done yet." Kashkari said, "We need to finish this job. We want to be confident that inflation will come down to our 2% target." He reiterated that there is a "possibility of another rate cut in December." Last Thursday, the Federal Reserve lowered interest rates by 25 basis points, marking the second consecutive rate cut. Kashkari mentioned on Saturday that strong economic growth and higher productivity could lead policymakers to cut rates less than previously expected in the coming months. In September of this year, Federal Reserve officials projected that there might be another 25 basis point cut before the end of the year, and Kashkari reaffirmed this prediction on Sunday. He stated that there is a "possibility of another rate cut in December." President-elect Donald Trump has promised to carry out mass deportations of illegal immigrants, raising questions about the potential impact on the U.S. economy and labor market. Kashkari indicated that deporting immigrants could cause "disruption" for some American businesses, and it remains unclear how the outflow of immigrant labor would affect inflation. Kashkari emphasized that it is still too early to determine how the new administration and Congress's potential policies will impact the economy and interest rate trajectory. Kashkari stated, "What the actual policies are, what Congress will pass, and how they will be implemented, there is too much uncertainty. The Federal Reserve will wait and see. We need to observe the decisions of other government departments first, and then analyze what this means for the economy."