-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI: Waller Wants Several Good Inflation Prints Before Fed Cut
Recent U.S. economic data indicate high interest rates are helping to cool off demand and disinflation has likely resumed, but the Federal Reserve needs to see several more months of good inflation data before cutting rates, Governor Christopher Waller said Tuesday.
That would be largely in line with market expectations for a first cut in either September or November, according to futures pricing.
"The economy now seems to be evolving closer to what the committee expected," he said in remarks prepared for the Peterson Institute for International Economics in Washington.
"Nevertheless, 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."
C+ REPORT
After data on inflation and economic activity came in hotter than expected in the first three months of the year, last week's April CPI report was a "welcome relief," Waller said.
Headline CPI added 0.31% in the month, and the 12-month rate nudged down a tenth to 3.4%. Core CPI came in at 0.29%, dragging down the 12-month rate two-tenths to 3.6%. That likely translates to three-month annualized core PCE inflation falling 1 percentage point to about 3.4%, he noted. PCE inflation data for April is due May 31.
"This is not where I want to see inflation. But, after having these three-month readings accelerate in January, February, and March, I’m happy to see a reversal of this recent pattern. It leaves me hopeful that progress toward 2% inflation is back on track," he said. (See: MNI INTERVIEW: CPI Keeps Fed On Track For '24 Cuts-Ireland)
But the progress on inflation last month was "so modest that it did not change my view that I will need to see more evidence of moderating inflation before supporting any easing of monetary policy," Waller said, adding he would give the inflation report at C+, "far from failing but not stellar either."
HIKES NOT NEEDED
It would probably take hikes off the table though. "The data suggests that inflation isn’t accelerating, and I believe that further increases in the policy rate are probably unnecessary," he said.
"With the labor market as strong as it is, my focus remains bringing inflation down toward the FOMC’s 2% goal," Waller said. (See: MNI INTERVIEW: Labor Cracks To Drive Fed Cuts-Staffing Group)
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.