MNI BRIEF: Fed's Waller Sees Two Or Three Cuts In 2025
MNI (WASHINGTON) - Federal Reserve Board Governor Chris Waller said Thursday he still expects the central bank to cut rates two or three times this year but whether that happens because of falling inflation or a weakening economy depends on how tariffs and other policies affect growth.
In December, "we had said probably two cuts. I don't think there's anything wrong with that kind of number. If there was one above, that would be a reasonable guess too," Waller said in Q&A at an event sponsored by The Wall Street Journal.
For now, Waller said, "there's a sense of pausing, waiting, see what fundamentally happens. We'll need another bit of data to sort out." (See: MNI INTERVIEW: Fed To Closely Gauge Inflation Views-Schoenle)
"I am still believing the good news rate cuts are in place but we're seeing a lot of stuff in the soft data that suggest maybe things aren't going to be so good on the real side of the economy. It hasn't shown up on the hard data. We can't just set policy on anecdotes."
Asked if he has any appetite to push for a rate cut at the March FOMC meeting, Waller said: "No, I don't think so. Like I said, I want to see what happens with this February inflation data. Want to see a little bit more with what happens with with the tariff policies."