According to Jinshi Data, Fed Governor Waller said that inflation should continue to decline in 2025, allowing the Fed to cut interest rates further, although the pace is uncertain. Waller pointed out that although inflation appears to be stagnant above the 2% target at the end of 2024, market forecasts and short-term data have convinced him that inflation is easing. Despite calls to slow or stop rate cuts, he believes that inflation will continue to move toward the 2% target in the medium term, and further rate cuts are appropriate.
Waller did not disclose the number of rate cuts this year, but pointed out that the views of Fed officials vary widely, ranging from no rate cuts to as many as five rate cuts. He still believes that the U.S. economy is on solid footing and there is no sign that the job market will weaken significantly.
