Fed’s Waller Signals Slow Inflation Progress and Potential 2025 Rate Cuts

Federal Reserve Governor Christopher Waller believes that inflation is showing signs of improvement despite the progress being made in the economy at the time. If this situation persists, the Federal Reserve might consider reducing interest rates in 2025.

Inflation data, at times, has not shown trends; however, Waller mentioned that seasonal factors might have influenced this outcome to some extent. Despite the challenge of inflation, the robust growth in job opportunities and the stable expansion of the economy indicate that the pressure on prices could potentially decrease in the months.

Tariffs might lead to price changes in the term; however, the Federal Reserve is more concerned with overall economic trends. Waller emphasized the importance of relying on data to make decisions and warned against hesitating due to uncertainty.

Traders will keep an eye on inflation updates and employment data to gauge the Fed’s policy decisions.