Fed's Kashkari says appropriate to debate rate cut in Sept.: Report

Federal Reserve headquarters

Minneapolis Fed President Neel Kashkari said it was appropriate to discuss potentially cutting U.S. interest rates in September because of the rising possibility of a weakening labor market, the Wall Street Journal reported.

Inflation was making progress, but the labor market was showing "concerning signs," Kashkari told the Journal in an interview.

However, Kashkari said he did not see any reason to lower interest rates in increments of larger than a quarter percentage point because layoffs remained low and claims for unemployment benefits did not suggest a notable deterioration.