Federal Reserve Board Governor Christopher Waller
- ‘Still no rush’ to cutting rates in current economy
- Fed may need to
maintain current rate target for longer than expected - Needs to see more
inflation progress before supporting rate cut - Needs at least a
couple of months of data to be sure inflation heading to 2% - Still expects Fed to
cut rates later this year - Economy’s strength
gives Fed space to take stock of data - Data suggests fewer
rate cuts possible this year - Economy is growing
at a healthy pace - Despite progress on
inflation, recent data has been disappointing - Data has showed
mixed messages on jobs front - Fed has made a lot
of progress lowering inflation - Wage pressures have
been easing - Unsure productivity
will keep at current strong pace
I posted last weekend on the bombshell from Bostic:
And I’ve reposted it and linked to it a number of times. It fits with comments from Kashkari back at the beginning of this month:
And markets are beginning to be swayed:
FOMC members are beginning to pile in on ‘higher for longer’ and ‘fewer cuts in 2024’. I hear the regular excuses:
- <insert name here … Bostic, Waller, Kashkari(!)> is a hawk, of course (s)he’d say that
But if you are holding on to a June rate cut call, or for 3 rate cuts this year my advice is to stick it where you stuck the call for 6 (sometimes 7!) rate cuts that plagued us early in the new year.