Federal Reserve Governor Christopher Waller, in an interview with CNBC on Thursday, expressed optimism about inflation trends and hinted at the possibility of rate cuts in the near future. Following strong December inflation data, Waller stated that if the trend continues, a rate cut could materialize in the first half of the year.
“If inflation data comes in as it has, I’d expect a cut in the first half of the year,” Waller said. He also noted that a March rate cut cannot be completely ruled out and suggested the potential for three to four cuts this year, contingent on favorable data trends.
Waller acknowledged his optimism compared to other Fed colleagues but maintained confidence that inflation is back on track and approaching target levels. Addressing the employment market, he described it as “solid but not booming,” suggesting recent strong jobs data may be compensatory for weaker earlier figures.
Looking ahead, Waller cautioned that unforeseen data could alter the outlook but downplayed concerns over incoming President Trump’s potential tariffs, suggesting they are unlikely to significantly impact inflation.
