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The President of the Minneapolis Federal Reserve has publicly stated that more proof is needed to confirm a downward trend in inflation before interest rates can be reduced.

During an appearance on CBS’s “Face the Nation,” Neel Kashkari, the Minneapolis Federal Reserve President, argued that inflation needed to reach 2% before considering a cut to interest rates. Currently, interest rates are at a 23-year high, at 5.25-5.5%. Kashkari said, “We need to see more evidence to convince us that inflation is well on our way back down to 2 percent. The good news is as you’re reporting this indicator, the job market remains strong. But there’s a really important difference between the US and those other countries. “

Kashkari pointed out a significant distinction between the United States and other countries. He said, “The US economic fundamentals are much stronger than in most other advanced economies around the world. While other countries are dealing with declining inflation and economic weakness, we are experiencing declining inflation slowly but with economic strength. This difference is driving the divergence in monetary policies.”

He also indicated that it was plausible for the Federal Reserve to cut interest rates “once” this year, although any decisions would likely be made in December. Kashkari noted, “We’re in a very good position right now to take our time, get more inflation data, get more data on the economy and the labor market before we have to make any decisions. But if you just said there’s going to be one cut, which is what the median indicated, that would likely be toward the end of the year.”