Fed's Waller Indicates Rate Cuts Are Coming Soon

IconCryptoNewsTerminal Staff17 Jul, 2024

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Fed's Waller Indicates Rate Cuts Are Coming Soon

Federal Reserve Governor Christopher Waller hinted that the central bank is nearing a point where it could justify reducing interest rates. Waller's comments come as the Fed continues to monitor inflation, which remains elevated but is showing signs of easing. "I don't think the inflation data is quite where the committee would like it to be as the ultimate goal, but I do think it's coming closer to the point where we could justify moving," Waller said in a speech. "It's possible that inflation pressures continue to abate, and, if so, that would argue for a relatively prompt move. But continued elevated inflation pressures argue for continued uncertainty about the path of the policy rate in the near term." The Fed has raised interest rates aggressively over the past year in an effort to cool inflation. However, the central bank is now facing pressure to pause or even reverse course as the economy slows. Waller's comments suggest that the Fed is still committed to fighting inflation, but that it is becoming more open to the possibility of cutting rates in the future. The next Fed policy meeting is scheduled for March 21-22, and the market will be closely watching for any further signals on the path of interest rates.

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