In an interview with CBS’s “Face the Nation,” Kashkari said the Fed needs more evidence to support its argument that inflation is on track to fall to 2 percent.

Last week, the Fed kept interest rates unchanged at the 5.25%-5.50% range they have been in since July 2023, aiming to cool inflation. The central bank also lowered its forecast for a single rate cut this year from the three it had forecast in March 2024.

The move came after the US Department of Labor reported that the Consumer Price Index (CPI) rose 3.3% year-on-year in May 2024, down slightly from the previous month and exceeding economists’ expectations. The pace of price increases has slowed significantly from a peak of around 9% last year, but inflation remains above the Fed’s 2% target.

According to Mr. Kashkari, the Fed needs more time to collect more data on inflation, employment and other economic figures before making a new decision. Mr. Kashkari said that if there is a rate cut, it will take place later this year.

Mr. Kashkari expressed surprise at the strength of the US job market even as the Fed raised borrowing costs sharply in 2022 and 2023, but he predicted further cooling in the coming period.

The unemployment rate rose to 4% in May, the highest since before the Fed launched its rate hike campaign in March 2022 but still below what most Fed policymakers consider sustainable.

Asked about the impact of high borrowing costs on would-be homebuyers, Mr. Kashkari said the best thing the Fed could do for the housing market was to bring inflation down to its target.