Fed’s Waller says may need to hold current rate for longer than expected, no rush to cut

Federal Reserve Board Governor Christopher Waller

  • ‘Still no rush’ to cutting rates in current economy
  • Fed may need to
    maintain current rate target for longer than expected
  • Needs to see more
    inflation progress before supporting rate cut
  • Needs at least a
    couple of months of data to be sure inflation heading to 2%
  • Still expects Fed to
    cut rates later this year
  • Economy’s strength
    gives Fed space to take stock of data
  • Data suggests fewer
    rate cuts possible this year
  • Economy is growing
    at a healthy pace
  • Despite progress on
    inflation, recent data has been disappointing
  • Data has showed
    mixed messages on jobs front
  • Fed has made a lot
    of progress lowering inflation
  • Wage pressures have
    been easing
  • Unsure productivity
    will keep at current strong pace

I posted last weekend on the bombshell from Bostic:

And I’ve reposted it and linked to it a number of times. It fits with comments from Kashkari back at the beginning of this month:

And markets are beginning to be swayed:

more to come

This article was written by Eamonn Sheridan at www.forexlive.com. Source