TechFlow news — "Fed whisperer" Nick Timiraos commented on Waller's speech, noting that Waller did not explicitly mention a 25- or 50-basis-point rate cut, but signaled a preference to start with 25 basis points while clearly reserving the option to accelerate cuts "at his discretion" if "new data" shows further deterioration.
Waller said: "Based on the evidence I see, I don't believe the economy has entered a recession, nor is it necessarily headed for one." Pay attention to the "ifs" in his remarks: "If the data indicate that larger cuts are warranted, I would support them."
"When inflation picked up in 2022, I strongly advocated front-loading rate hikes; if appropriate, I would support front-loading rate cuts now. These decisions will be data-dependent." (Possibly excluding today's data.) "While I expect rate cuts to proceed cautiously as the economy and employment continue to grow, I stand ready to act swiftly when necessary to support the economy, especially against the backdrop of stable inflation."
