The Federal Reserve should hold off on cutting interest rates until there is substantial progress on inflation, Minneapolis Federal Reserve President Kashkari stated on CNBC on Tuesday. Many months of positive inflation data are necessary to justify the first rate cut, and another rate hike should not be ruled out if inflation remains at stubbornly high levels. The rhetoric of no rush to loosen monetary policy was consistent with recent statements by FOMC members and minutes from the Committee’s last policy-setting meeting. As a result of high inflation and robust growth, the Fed opted to hold the federal funds rate at the terminal level of its tightening cycle of 5.25%-5.50% in May. Most investors expect now the first rate cut only in December.