United States Federal Reserve Governor Christopher Waller said the Fed may need to hold interest rates for longer than expected and that there is "still no rush" to cut rates. He said recent inflation data has been "disappointing," even though "a lot of progress" has been made in curbing inflation. He said the Fed would need to wait "at least a couple of months" to be sure that inflation is heading toward the 2% target but that "the case for hiking rates is very remote."
However, Waller said he still expects the Fed will lower rates this year, although there could be fewer cuts than previously indicated. He stated the economy is growing at a "healthy pace," which gives the Fed time to analyze data and consider future monetary policy. He added that, while the wage pressure has been easing, the jobs data has been mixed, and he is "unsure" that productivity will stay at the current strong pace.
