From Nasdaq:

Federal Reserve Gov. Christopher J. Waller suggests a cautious approach to interest rate cuts in order to keep the economy stable and manage inflation.

Economic Outlook and Interest Rate Policy:
Waller emphasizes strength in economic activity and labor markets, doubts the need for rapid rate cuts, and notes a slowdown in GDP growth suggesting a strategic cooling down of the economy.

Labor Market Insights:
Positive employment data is highlighted, but caution is advised regarding potential slowdown in job growth.

Inflation and Monetary Policy:
Inflation is trending towards the Fed’s 2% target but Waller calls for continued vigilance and cautious optimism.

Future Policy Adjustments:
Waller opens the door to a potential rate cut in 2024, contingent on upcoming data, emphasizing careful and gradual adjustments.

Market Reactions:
The likelihood of a March rate cut has dropped to 63% and yields on 10-year and 2-year treasury bonds have risen, causing a downturn in stock and bond values.



Read more: Fed Gov. Waller’s Talk Tempers Rate Cut Hopes: Fed In No Rush, Rattles Investors