Federal Reserve Governor Christopher Waller stated that easing inflation could allow the U.S. central bank to cut interest rates sooner and faster than anticipated. He cited estimates indicating that core inflation, as measured by the Personal Consumption Expenditures Price Index excluding food and energy costs, has been near the Fed's 2% target for six of the past eight months. Waller expressed optimism that this disinflationary trend will continue, potentially leading to rate cuts in the first half of the year.
WASHINGTON, Jan 16 - Inflation is likely to continue to ease and possibly allow the U.S. central bank to cut interest rates sooner and faster than expected, Fed eral Reserve Governor Christopher Waller said on Thursday in comments that pushed against recent market moves that anticipate a shallower Fed rate path.
"If we continue getting numbers like this, it is reasonable to think rate cuts could happen in the first half of the year ...
The Fed is anticipated to hold its benchmark overnight rate steady in the 4.25%-4.50% range at its meeting later this month, but investors had expected the pause to last until perhaps June, with only a single rate cut this year. But"you are not seeing a labor market that is starting to overheat or accelerate ... Things are still restrictive," Waller said.
FED INFLATION INTEREST RATES ECONOMY DISINFLATION
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