Minneapolis Fed Chief Undecided on December Rate Cut

As of November 14th, 2025, Federal Reserve Bank of Minneapolis President Neel Kashkari remains undecided on the best course of action for the central bank's December policy meeting. Kashkari had previously not supported the Fed's last interest rate cut, stating that the "anecdotal evidence and the data" he had seen implied "underlying resilience in economic activity."

In the weeks leading up to the December 9-10 rate decision, Kashkari said the available data has suggested "more of the same" for the economy. He explained that he can make a case for both cutting rates and holding them steady, and that the decision will depend on how the data evolves.

Kashkari's remarks align with a growing number of Fed officials who have expressed skepticism over the need for another rate cut in December. This shift in sentiment has caused investors to mark down the odds of a rate cut at the upcoming meeting to around 50%, down from nearly 100% before the Fed's October gathering.

Despite the mixed signals, Kashkari acknowledged that there are "real pockets of weakness in the labor market," with "low-income borrowers -- sub-prime borrowers, sub-prime companies that serve sub-prime markets -- getting into trouble." At the same time, he noted that "a lot of corporate earnings are doing fine, and a lot of corporations are very optimistic about 2026."