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Federal Reserve hawk Waller: Prefer to cut interest rates in December

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2024-12-03 04:29:27
On December 3, Federal Reserve Governor Paul Waller said he was inclined to support a rate cut at the Fed's meeting later this month, although he also said he might be open to the idea of keeping interest rates on hold. "Policy remains sufficiently restrictive that further rate cuts at the next meeting would not significantly change the stance of monetary policy and leave enough room for slowing the pace of rate cuts if necessary to maintain progress towards the inflation target," Waller said in remarks prepared for a meeting in Washington on Monday. Waller said he was troubled by slightly higher-than-expected inflation data over the past two months. He compared himself to a mixed martial arts fighter who "has been choking inflation and waiting for it to kick in, but it always slips out of my hands at the last minute". He said the Fed would not allow inflation to accelerate again. "Submission is inevitable, and inflation is not out of the octagonal cage yet," he said. Mr. Waller said that while inflation had been more stubborn in recent months, economic data and forecasts suggested it would return to the Fed's 2 per cent target.