MNI BRIEF: Waller Sees Fed Cuts Sooner Than Markets Expect
MNI (WASHINGTON) - U.S. inflation could get back to target sooner than some expect, and the Federal Reserve could lower interest rates again in the next few months and cut as many as four times this year, Fed Governor Chris Waller said Thursday. Traders are currently pricing in one quarter-point cut by July and two by year-end.
Core inflation is "getting very close to where we want to be," he told CNBC in an interview. "If we continue getting numbers like this it's reasonable to think rate cuts could happen in the first half of the year."
"I don't think March could be completely ruled out depending on the data, but anything that disrupts that is likely to push it back some," he said. The median estimate of the neutral rate among FOMC members would imply three to four more cuts, he added. Three or four cuts this year could be possible if data cooperate, he said. (See: MNI INTERVIEW: Fed Won't Consider Cuts Until March - Benigno)