Federal Reserve Governor Christopher Waller said the U.S. economy was “within striking distance” of the central bank’s goal of a 2% inflation rate, but he cautioned against pushing for interest rate cuts until a lower inflation environment was sustainable.
In prepared remarks delivered today before The Brookings Institution in Washington, D.C., Waller advocated for the Fed to move “methodically and carefully” rather than rush into a series of rate cuts.
“With economic activity and labor markets in good shape and inflation coming down gradually to 2%, I see no reason to move as quickly or cut as rapidly as in the past.”
Waller also noted the Fed’s primary focus on 2% inflation is being coupled with the desire in having an economy that is “keeping employment near its maximum level. Today, I view the risks to our employment and inflation mandates as being more closely balanced,” he said.
Nonetheless, Waller predicted central bank’s policy making Federal Open Market Committee will eventually redirect its policy to accommodate rate cuts.
“The data we have received the last few months is allowing the Committee to consider cutting the policy rate in 2024,” Waller said, adding that such changes must “be carefully calibrated and not rushed,” with the Fed requiring more positive data to determine “that inflation is moving down sustainably toward our inflation goal.”
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The government should consider what is best for the majority of the common good not the people who are already rich. Let the people reach the culmination of their dream like owning a house but how is it possible with the rates that are too high; this does not benefit the common good. There should be a balance of everything. You think with the rates you are offering it is achievable and fair? Better learn to weigh the balance
If they’re already planning stimulus, this is such a bad idea. We’re finally seeing cracks and all that mess they made from the Covid stimulus money and lockdowns. Leave it alone.