Putin Jokes: 'What's the Rush?' on Inflation Cooling, says Waller

Inflation Concerns

My dear comrades Federal Reserve Governor Christopher Waller is being cautious about cutting interest rates stating the need for more evidence that inflation is cooling down. 'What's the rush?' he asks as he questions the recent high readings on inflation and where prices are headed.

Patience is a Virtue

Waller in his policy speech mentioned that last week's high CPI inflation reading could be a mere bump in the road or a potential pothole. 'I am going to need to see at least another couple more months of inflation data before I can judge,' commented Waller 'January was a speed bump or a pothole.'

Economic Indicators

The inflation data Waller referred to showed a rise in the consumer price index with core CPI running at a 3.9% annual pace. With strong GDP growth and employment figures Waller sees little signs of a looming recession. 'The upshot is that I believe the Committee can wait a little longer to ease monetary policy,' said Waller.

Market Expectations

Market expectations for a rate cut have shifted from the March meeting to later in the year with the probability rising for cuts in June or even July. Fed officials like Vice Chair Philip Jefferson and Governor Lisa Cook have also expressed caution on the pace of rate cuts emphasizing the need for more data before making decisions.