Fed's Waller: Will Support Further Cuts in 2025 But Pace Will Depend on Inflation Progress
Federal Reserve Governor Christopher Waller said on Wednesday that he will support additional rate cuts in 2025 but the pace will depend on further inflation progress, per Reuters.
Key takeaways
"Inflation will continue to make progress towards 2%."
"Economy overall on solid footing, nothing to suggest labor market will weaken dramatically in coming months."
"Though recent inflation progress has been slow, much of that is due to imputed prices for housing and non-market services that are a less reliable guide to underlying price pressures."
"Base effects will improve inflation in 2025; more recent monthly and other shorter-term data also indicates improvement to come."
"Geopolitical conflicts and tariffs could be a source of renewed price pressure."
"Do not expect tariffs to produce persistent inflation and thus are not likely to influence views on appropriate monetary policy."
"Central bankers have a broad set of challenges ahead, from aging populations to geopolitical conflict and challenges to globalization."
Source : FXstreet
