TechFlow News — According to Jinshi, Federal Reserve Governor Christopher Waller said recent economic data suggest that policymakers can afford to be less urgent about further rate cuts than they were at last month’s meeting. Speaking at a conference hosted by the Hoover Institution in Stanford, California, on Monday, Waller stated in prepared remarks: “I believe the overall data indicate that monetary policy should proceed more cautiously on the pace of rate cuts than it did at the September meeting.” He added that if current economic conditions persist, “we can move policy toward a neutral stance at a prudent pace.” A neutral policy rate is one that neither stimulates nor restrains economic growth. Waller also noted that recent data—including upward revisions to economic growth and increased job openings—suggest the economy may not have slowed as much as previously expected. At the same time, Waller indicated his baseline expectation is for gradual interest rate reductions next year.
The Federal Reserve will make its next rate decision following the FOMC meeting on November 6–7. During the question-and-answer session after his speech, Waller declined to provide specifics on what he meant by a “gradual” pace of rate cuts.
