Federal Reserve Insights from Governor Christopher Waller

Investing.com — Federal Reserve Governor Christopher Waller discussed inflation data in an interview with CNBC on Thursday, emphasizing its positive trends.

Waller stated that if inflation data continues to improve, we may see interest rate cuts in the first half of the year. “If inflation data comes in as it has, I’d expect a cut in the first half of the year,” he noted.

He suggested that a March rate cut is still a possibility. If inflation continues to decline, there could be multiple cuts this year, potentially three or four, depending on future data.

While he acknowledged that he might be more optimistic than some of his colleagues at the Federal Reserve, Waller believes inflation is returning to trend and will likely meet target levels.

Regarding the recent jobs report, he remarked that stronger data served as a recovery from previous weaker reports, indicating a solid, albeit not booming, employment market.

Waller expressed caution about future data possibly altering this outlook, and he also indicated that incoming President Trump’s potential tariffs probably wouldn’t lead to significant inflation increases. He does not foresee tariffs having a major impact on inflation.