Federal Reserve Board Governor Christopher Waller

  • 'Still no rush' to cutting rates in current economy
  • Fed may need to maintain current rate target for longer than expected
  • Needs to see more inflation progress before supporting rate cut
  • Needs at least a couple of months of data to be sure inflation heading to 2%
  • Still expects Fed to cut rates later this year
  • Economy’s strength gives Fed space to take stock of data
  • Data suggests fewer rate cuts possible this year
  • Economy is growing at a healthy pace
  • Despite progress on inflation, recent data has been disappointing
  • Data has showed mixed messages on jobs front
  • Fed has made a lot of progress lowering inflation
  • Wage pressures have been easing
  • Unsure productivity will keep at current strong pace

I posted last weekend on the bombshell from Bostic:

And I've reposted it and linked to it a number of times. It fits with comments from Kashkari back at the beginning of this month:

And markets are beginning to be swayed:

FOMC members are beginning to pile in on 'higher for longer' and 'fewer cuts in 2024'. I hear the regular excuses:

  • <insert name here ... Bostic, Waller, Kashkari(!)> is a hawk, of course (s)he'd say that

But if you are holding on to a June rate cut call, or for 3 rate cuts this year my advice is to stick it where you stuck the call for 6 (sometimes 7!) rate cuts that plagued us early in the new year.

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