Kashkari interprets the Fed's rate cut: Weak labor market provides support.

Jin10 data September 19th news, with the inflation rate still above the target level, choosing to cut interest rates seems to make “maintaining credibility” a more critical issue for the Fed. Fed's Kashkari stated: “We need to work extra hard to explain to the public why we are taking the current action—why we are choosing to cut interest rates now, in the context of having faced high inflation for four consecutive years.” He emphasized: “We will not tolerate a 3% inflation rate.” Kashkari pointed out that the weak labor market provides support for cutting interest rates, and at the same time, inflation levels often slow down as a result. He stated: “I am confident that we will bring the inflation rate back to the 2% target level.”