The Federal Reserve should wait for more substantial progress on inflation before considering interest rate cuts, Minneapolis Federal Reserve President Neel Kashkari told CNBC on Tuesday.

When asked about the conditions for rate cuts in 2024, Kashkari said, “We need many more months of positive inflation data to give me confidence that it’s appropriate to dial back.”

Kashkari also didn’t rule out further rate hikes if inflation persists, stating that the central bank shouldn’t dismiss any options at this point.

In April, U.S. inflation increased by 0.3%, slightly less than expected, offering some relief to policymakers. However, it remained 3.4% higher compared to the previous year.

Kashkari remains confident that the Fed will eventually reach its 2% inflation target but emphasized the importance of patience.

“I don’t see the need to hurry and cut rates. I think we should take our time and get it right,” he told CNBC.

He also mentioned that while the central bank might consider adjusting its target rate in the future, it was premature to “move the goal posts” at this time.

Earlier this month, Kashkari suggested that the Fed might need to keep interest rates steady for “an extended period”—potentially all year—to achieve its inflation goal.

Recently, there has been a growing divergence among major central banks on interest rate policies.

The Fed, which has historically been quick to adjust rates, is becoming more cautious amid persistent inflation.

In contrast, the European Central Bank is expected to lower rates ahead of the Fed, with key ECB officials supporting a June cut. Similarly, the Bank of England is anticipated to reduce rates this summer.