Fed Governor Christopher Waller emphasized in a speech today that “several more months” of favorable inflation data are necessary before he would consider supporting interest rate cuts.
While the latest CPI data was a “reassuring signal” indicating that inflation is not accelerating, Waller noted that the progress shown was “small.”
Waller highlighted that current data on spending and labor market suggest that monetary policy is at an “appropriate setting” to exert downward pressure on inflation.
However, “in the absence of a significant weakening in the labor market, I need to see several more months of good inflation data before I would be comfortable supporting an easing in the stance of monetary policy,” he said.
Full speech of Fed’s Waller here.
