WASHINGTON (Reuters) – Inflation is likely to continue to ease and possibly allow the Federal Reserve to cut rates sooner and faster than expected, Fed governor Chris Waller said Thursday in comments that pushed against recent market moves that anticipated a shallower Fed rate path.
Inflation “is getting close to what our 2% inflation target would be,” Waller said on CNBC. “If we continue getting numbers like this it is reasonable to think rate cuts could happen in the first half of the year…I am optimistic that this disinflationary trend will continue and we will get back closer to 2% a little quicker than maybe others are thinking.”
(Reporting by Howard Schneider)
Comments