Fed's Waller: Data in the last few months allowing Fed to consider cutting rates this year

The event was moved to virtual-only due to snow in Washington.

  • Changes in policy path must be 'carefully calibrated' and 'not rushed'
  • I am more confident that we are within striking distance of achieving sustainable 2% inflation
  • We are close but I will need more info in coming months to be sure
  • I view risks to Fed's mandates as more closely balanced
  • Fed will be able to cut rates this year as long as inflation doesn't rebound or stay high
  • This view is consistent with Fed projections for three 25 bps cuts in 2024
  • Timing and actual number of cuts will depend on data
  • Economic activity has moderated
  • Setting of policy needs to proceed with more caution to avoid over-tightening
  • Financial conditions remain restrictive
  • Highlights signs that the labor market continues to come into better balance
  • Data on job openings indicates ongoing moderation in labor demand
  • Full text


https://www.forexlive.com/centralba...to-consider-cutting-rates-this-year-20240116/
 
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