From CNBC: 2024-05-21 09:26:47

Federal Reserve Governor Christopher Waller stated that he doesn’t anticipate further interest rate hikes due to easing inflation, but he remains cautious about supporting cuts. He cited improving data, including flat retail sales and cooling sectors, to support his stance. Waller emphasized the need for more evidence of sustained lower inflation.

Waller, known for his hawkish views, believes the economy is aligning with the Fed’s expectations, backing off from previous rate hike support. Despite solid payroll gains, he remains vigilant, awaiting several more months of positive inflation data before backing any monetary policy easing. His comments come amid shifting market expectations on rate cuts.

April’s consumer price index showed a 3.4% inflation rate, slightly down from March, meeting Wall Street economists’ expectations. While Waller finds the report a “welcome relief,” he insists on more proof of inflation moderation before supporting easing. Market sentiments have adjusted due to evolving economic conditions, leading to revised rate cut projections.

Read more: Fed Gov. Waller wants ‘several months’ of good inflation data before lowering rates