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Fed Kashkari: A significant rate cut would trigger high inflation.
Jin10 data, October 8th news: Fed's Kashkari (not a voting member this year) warned on Tuesday that any significant rate cuts carry the risk of triggering inflation. Kashkari stated, “You might see high inflation in the economy. Essentially, if you try to push the speed of economic growth beyond its potential growth rate and the capacity to generate prices, it will ultimately lead to a widespread rise in prices.” He warned that, given the slowing economic growth and ongoing inflation, current economic data shows some signs of stagflation.