Fed Governor Waller: Supportive of Further Rate Cuts This Year

BlockBeats News, January 8th, Federal Reserve Governor Waller said on Wednesday that the inflation rate should continue to decline in 2025 and allow the Fed to further cut interest rates, although the pace is still uncertain. Waller stated that although inflation "seems to have stalled" above the Fed's 2% target in the last few months of 2024, based on market inflation estimates and one-month and shorter-term inflation readings, he believes that U.S. inflation is continuing to ease.

Waller said, "This minimal progress has led to calls to slow or halt interest rate cuts. However, I believe that in the medium term, the inflation rate will continue to move toward the 2% target, and further interest rate cuts will be appropriate." Waller did not disclose how many rate cuts he believes should occur this year, but he noted that Fed officials' views range widely, from no cuts to as many as five cuts. "I still believe the U.S. economy is on a solid footing," Waller said, "and there are no signs in the data or forecasts that the labor market will weaken significantly in the coming months." (FXStreet)