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

Discussion in 'Economics' started by Nighthawk, Jan 16, 2024.

  1. 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/