Fed's Kashkari (2026 voter) says Fed can sit tight as war clouds the outlook, via WSJ interview; 1 or 2 cuts later this year could be appropriate if inflation cools, but war in the Middle East could also create conditions that would justify extended pause

Kashkari's comments suggest a cautious Fed stance amidst geopolitical uncertainty, indicating that while rate cuts could be appropriate if inflation eases, the ongoing conflict may necessitate a prolonged pause. This positions the Fed's decision-making as highly sensitive to both inflation trends and external shocks, potentially impacting market expectations and asset pricing in the currency and fixed income spaces.