- ORIGINAL NEWS
Fed’s Christopher Waller advocates moving ‘carefully’ with rate cuts
- SUMMARY
Federal Reserve Governor Christopher Waller hinted at the possibility of rate cuts this year but emphasized the need for a cautious approach.
He believes the Federal Open Market Committee can gradually lower the federal funds rate without rushing.
Waller also mentioned slowing the pace of quantitative tightening, particularly for Treasurys, while maintaining the current pace for mortgage-backed securities.
Despite progress in curbing inflation, he seeks more information, especially from upcoming revisions to the consumer price index, before declaring victory.
While stocks and Treasury yields fluctuated upon the news, the Fed aims to strike a balance between avoiding over-tightening and achieving its 2% inflation goal.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Federal Reserve Governor Christopher Waller acknowledged Tuesday that interest rate cuts are likely this year, but said the central bank can take its time relaxing monetary policy.”
Negative
“Stocks held in sharply negative territory after the release of Waller’s remarks, while Treasury yields moved higher.”
“In making the pitch for rate cuts, Waller noted the progress made against inflation has not come at the cost of the labor market.”