On Friday, the 16th of August 2019, President of Minneapolis Federal Reserve Bank, Neel Kashkari, 46, a Republican, with parents hailing from Kashmir, India, who oversaw the troubled asset relief program, a major instrument for US government during the era of great financial depression between 2007-2009, said that the Fed would likely to cut interest rates more than twice this year, while a rancorous cycle of aggressive rate cut to counter an imminent economic slowdown in the United States might begin as early as September’s FOMC minutes.
Aside from that, Neel Kashkari, who usually participates in policy meets on US Central Bank, but does not have a vote on monetary policy this year, had been quoted saying later on Friday (August 16th) that the Federal Reserve went too far in raising rates over the recent years.
Besides, according to the Republican President of Minneapolis Federal Reserve, US President Donald Trump, a Democrat, was to blame for recent downswing in the US economy, as Trump’s tariff war with China had been draining millions of dollars out of the financial markets every day across the world.
Adding that very few businesses held Fed responsible for an imminent recession in the United States as signaled by an inverted 2-yr/10-yr treasury yield curve with 30-yr US treasury yield curve below 2 percent for the first time, Kashkari said on Friday (August 16th), “Very few businesses that I talk to are pointing to the Federal Reserve and saying it is your interest rate policy that is slowing things down. Much more likely it is focused on trade policy and global uncertainty and global anxiety. ”