Fed Governor Waller Cautious on Monetary Policy. Good Inflation Data Needed Before Supporting Rate Cuts

Fed Governor Christopher Waller said he does not think further interest rate hikes will be necessary based on recent economic data. However, Waller said he would need to see "several months" of good inflation data before supporting an easing of monetary policy through rate cuts. Recent data suggest the Fed's rate hikes have helped reduce some demand-driven inflation. The job market also shows signs of loosening with metrics like job quits declining, though payroll gains remain solid. Futures markets have reduced expectations for rate cuts this year from six to, at most, two small decreases by year-end.