Federal Reserve Official Signals Potential Rate Cuts Amid Economic Uncertainty
According to Odaily, Federal Reserve Governor Christopher Waller indicated on Wednesday that the time for interest rate cuts is approaching, although economic uncertainties make the timing unclear. Waller stated, 'I believe the current data is consistent with achieving a soft landing, and I will be looking for data in the coming months to support this view.' He added, 'While I do not think we have reached the final goal, I do believe we are getting closer to the point where it would be reasonable to lower policy rates.'Waller noted that economic growth is currently progressing at a 'more moderate pace,' the job market is more balanced, and inflation has eased. He mentioned that the most 'optimistic' scenario would be a steady decline in inflation pressures, which is 'significant but not high,' and in such a case, 'I can imagine rate cuts in the near future.' However, Waller cautioned that the more likely scenario involves a more uneven decline in inflation, raising doubts about the ability to consistently return to the 2% target. 'In this case, the uncertainty of near-term rate cuts is greater,' he stated. The least likely but still possible scenario is a resurgence in inflation, which he did not link to the monetary policy path.