© Reuters. FILE PHOTO: Federal Reserve Board Governor Christopher Waller poses before a speech at the San Francisco Fed, in San Francisco, California, U.S., March 31, 2023. REUTERS/Ann Saphir/FIle Photo
By Howard Schneider and Ann Saphir
WASHINGTON (Reuters) -U.S. Federal Reserve Governor Christopher Waller said on Tuesday he is “increasingly confident” the current setting of the central bank’s benchmark interest rate will prove adequate to lower inflation to the Fed’s 2% target and nodded to possible rate cuts in a matter of months if progress on lowering inflation continues.
“Inflation rates are moving along pretty much like I thought,” Waller said during an event at the American Enterprise Institute. If progress continues “for several more months…three months, four months, five months…we could start lowering the policy rate just because inflation is lower.
“It has nothing to do with trying to save the economy. It is consistent with every policy rule. There is no reason to say we will keep it really high.”
Waller’s prepared remarks and responses to questions contained the same caveats all Fed officials currently use in their public remarks, noting that “inflation is…
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