TechFlow news, according to Jinshi Data, Federal Reserve Governor Waller said on Wednesday that the time for the Fed to cut interest rates is "drawing closer," but uncertainty about the economic outlook makes it unclear when rates might be lowered. Waller noted that current data align with a "soft landing" scenario, and he will look for data supporting this view over the coming months.
Waller stated that although the final goal has not yet been reached, he believes the moment when there would be justification to lower policy rates is drawing nearer. Economic growth is currently proceeding at a "more moderate pace," the labor market has become more balanced, and inflation has eased. The most "optimistic" scenario is for inflationary pressures to continue declining steadily, in which case rate cuts could come in the "near future." However, inflation may decline unevenly, raising doubts about whether it can sustainably return to the 2% target, making near-term rate cuts more uncertain. The least likely but still possible scenario is a resurgence of inflation, though he did not link this outcome to the monetary policy path.
