Fed’s Kashkari Opposes Rate Cuts, Adopts Cautious Approach

Neel Kashkari, President of the Minneapolis Federal Reserve, did not support October’s rate cut and remains undecided on another cut for December. He emphasizes a data-dependent approach, considering economic resilience and persistent inflation pressures.

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, opposed the previous rate cut in October 2025 and remains undecided on a possible reduction at December’s meeting, emphasizing a data-dependent approach.

Kashkari’s stance on interest rates matters as it affects liquidity and sentiment in the crypto market, with immediate reactions reflecting market caution.

Kashkari, a prominent figure in the Federal Reserve, remains skeptical about further rate cuts . His previous experience during the 2008 crisis informs his cautious stance. Hawkish central bank policies typically result in diminished liquidity, impacting risk assets, including crypto.

Kashkari emphasized that decisions depend on upcoming economic data . Federal Reserve discussions focus on inflation and economic stability. His statements, echoed by other policymakers, highlight a broader reluctance to ease monetary policy further without clear data.

A cautious Fed approach often restricts liquidity, affecting crypto markets and risk assets. The decision impacts cryptocurrencies like Bitcoin and Ethereum, causing market fluctuations.

Changes in liquidity and credit conditions echo across asset classes.

Interest rate policies influence investment strategies, affecting capital flow in the financial sector . While cautious approaches may stabilize inflation, they could limit speculative activities, crucial for the crypto industry. Regulatory landscapes and financial markets might shift in response, affecting both traditional and digital assets.

I did not support the October rate cut…I can make a case depending on how the data goes to cut, I can make a case to hold, and we’ll have to see. — Neel Kashkari, President, Federal Reserve Bank of Minneapolis Bloomberg, Nov 13, 2025

Current trends suggest a limited likelihood of a rate cut in December , keeping investor sentiment cautious. Past hawkish cycles have triggered crypto de-risking, decreasing DeFi engagement. Analysts monitor these patterns for clues on future crypto market movements.