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Federal Reserve Watch for Feb. 19: Kashkari Says Current Stance of Monetary Policy Already Close to Neutral

BY MT Newswires | ECONOMIC | 02/19/26 02:25 PM EST

02:25 PM EST, 02/19/2026 (MT Newswires) -- Minneapolis Fed President Neel Kashkari (voter) said that the current stance of policy is near neutral, suggesting no need for further rate reductions with inflation still elevate and the labor market slowing but not substantially weakened.

Recent comments of note:

(Feb. 18) Minutes of the Jan. 27-28 FOMC meeting show considerable diversity among the participants, with some advocating for further rate cuts, some saying that the FOMC should pause of the foreseeable future and others who suggested that the next rate move could be upward rather than downward if inflation rebounds.

(Feb. 17) Fed Governor Michael Barr (voter) said that the FOMC should maintain its current stance of monetary policy "for some time" to see how the outlook for inflation and economic growth evolves.

(Feb. 17) San Francisco Fed President Mary Daly (nonvoter) said the Fed needs to continue it work to lower inflation while also protecting the labor market from further weakness.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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