TechFlow news, on January 8, according to Jinshi News, Federal Reserve Governor Waller said Wednesday that although inflation stagnated above the 2% target at the end of 2024, the U.S. inflation situation continues to improve based on market expectations and short-term inflation data. He expects inflation will continue to decline in 2025, supporting further rate cuts.
Waller emphasized that the fundamentals of the U.S. economy remain robust, with no clear signs of weakening in the labor market. There is significant divergence among Fed officials regarding the number of rate cuts in 2025, ranging from zero to five. He believes that although slow progress in inflation has sparked calls for slowing or pausing rate cuts, medium-term inflation will continue moving toward the 2% target, making further rate cuts appropriate.
