Fed Governor Waller: Rate cut is "getting closer"

Odaily News Fed Governor Waller said Wednesday that the time for the Fed to cut interest rates is "getting closer," but uncertainty about the direction of the economy makes it unclear when rates might be lowered. "I believe the current data is consistent with achieving a 'soft landing,' and I will be looking for data to support this view in the coming months," Waller said. "While I don't think we have reached our ultimate goal, I do believe that we are getting closer to the moment when it would be reasonable to cut the policy rate," he said. Waller noted that economic growth is now moving forward at a "more moderate pace," the job market is more balanced and inflation has eased. He said the most "optimistic" scenario is that there is a "significant but not high" chance that inflation pressures will continue to decline steadily, in which case "I can imagine a rate cut in the near future." But Waller said that in the more likely scenario, the decline in inflation would be more uneven, which would cast doubt on whether a sustainable return to the 2% target could be achieved. "In this scenario, there is greater uncertainty about a near-term rate cut," he said. The least likely but still possible prospect is a rise in inflation, which he did not link to the path of monetary policy. (Jin Shi P)