Mr. Waller said that this week's CPI data was very good and that if more such data were available, the Fed could cut rates in the first half of the year, arguing that a cut in March could not be ruled out. If inflation falls, the Fed could cut rates more aggressively than market expectations.
Mr. Waller, the Fed governor, said he still saw no need for a US digital currency and that it was too early to assess the impact of new technologies on frictions in the payment system, but that the private sector was well placed to explore these developments. The Fed's role, which includes supporting innovation while managing risks to financial stability, aims to promote the efficiency and security of payment systems that benefit households, businesses and the economy as a whole.
Federal Reserve Governor Paul Waller said that since stablecoins are effectively digital currencies, they can reduce the need for payment intermediaries, which can reduce the cost of global payments. But their safety is not guaranteed, and if proper guardrails can be put in place to minimize operational risks and mitigate other risks of stablecoins, such as their potential use in illicit finance, then stablecoins could offer benefits in terms of payments and serve as safe assets on a variety of ...
Fed Governor Waller said the Fed could cut interest rates earlier if inflation falls below 2 percent, which is an unlikely scenario, or if the labor market deteriorates. The Fed could pause rate cuts if inflation rises unexpectedly. And said the latest inflation data is "disappointing" and the economy is on solid footing and may not slow as expected; GDP growth is expected to be faster in the second half of 2024. Looking ahead, job growth is expected to slow and the unemployment rate will gradua...
Mr. Waller, the Fed governor, said the central bank should be more cautious in cutting interest rates than it was at its September meeting. The underlying expectation is a gradual reduction in the policy rate over the next year, which is currently at a restrictive level; if the economy develops as expected, policy can be adjusted to a neutral stance at a "steady pace".
Federal Reserve Governor Waller said that the Federal Reserve cut interest rates by 50 basis points is the right move to keep the economy strong; the inflation data released during the quiet period prompts me to favor a sharp rate cut; future rate cuts will depend on the upcoming data.
Federal Reserve Governor Paul Waller said on Friday that the "time has come" to start a series of interest rate cuts this month, adding that he was open to the size and speed of the cuts. "If the data support a series of rate cuts, then I think a series of rate cuts is appropriate. If the data shows that a larger rate cut is needed, then I will also support it." Federal Reserve Chairperson Jerome Powell said at the annual meeting of global central banks two weeks ago that given the rise in infla...
Federal Reserve Governor Waller said that the current batch of data requires the Federal Reserve to take action; if the situation is suitable, it will advocate "front-loaded interest rate cuts"; inflation will reach the Federal Reserve's 2% target; and it is crucial to start cutting interest rates at the next meeting.