Federal Reserve Governor Waller: Supports further interest rate cuts this year
ChainCatcher news, according to Jin Shi reports, Federal Reserve Governor Waller stated on Wednesday that the inflation rate should continue to decline in 2025, allowing the Federal Reserve to further cut interest rates, although the pace remains uncertain.Waller noted that while inflation "seems to be indeed stagnating" above the Federal Reserve's 2% target in the last few months of 2024, the market-based inflation forecasts, along with one-month and shorter-term inflation readings, lead him to believe that inflation in the U.S. is continuing to ease.Waller said, "This minimal progress has led to calls for slowing or halting interest rate cuts. However, I believe that in the medium term, the inflation rate will continue to move towards the 2% target, and further rate cuts will be appropriate."Waller did not disclose how many times he thinks interest rates should be cut this year, but he pointed out that there is a wide range of views among Federal Reserve officials, from no cuts to as many as five cuts. "I still believe the foundations of the U.S. economy are solid," Waller stated, "and there are no signs in the data or forecasts indicating that the labor market will weaken significantly in the coming months."