- Fed Governor Christopher Waller advises caution on future interest rate cuts.
- He cites strong employment, income growth, and persistent inflation.
- The Fed recently cut rates by 50 basis points and may reduce them again, but less aggressively.
Waller indicated the need for careful consideration of economic indicators after last month’s significant rate cut.
He emphasized that the economy remains strong, with recent data showing solid job growth and a rise in inflation. For instance, the September job report was better than expected, and the GDP growth rate was revised upwards.
Waller is closely monitoring upcoming data on inflation and employment to guide future decisions on rate cuts.
Market traders are looking forward to the release of September retail sales data for more insights into economic trends.
Currently, there is a forecast for a 25-basis point cut at the Fed’s November meeting, with expectations of about 125 basis points in cuts for next year.
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