Neel Kashkari, President of the Minneapolis Federal Reserve Bank, indicated openness to a potential rate cut in September but emphasized that any reduction should not exceed 25 basis points.

Despite not having a vote on this year's monetary policy, Kashkari noted a shift in risk balance, making the discussion of a rate cut appropriate.

This change comes as US inflation continues to ease, while the labor market shows signs of weakening, with July’s unemployment rate rising to 4.3%, the highest in nearly three years. Kashkari now acknowledged the need for flexibility as economic conditions evolve.