According to TechFlow, Nick Timiraos, the "Federal Reserve mouthpiece," said in response to Waller's speech that Waller did not explicitly mention a "25" or "50" basis point rate cut in his speech, but tended to support starting with 25 basis points, explicitly reserving the option of accelerating rate cuts "as appropriate" if "new data" showed further deterioration.
“Based on the evidence that I’ve seen, I don’t think the economy is in recession, nor is it necessarily headed for a recession,” Waller said. Note the “ifs” in his remarks: “‘If’ the data indicated that deeper cuts were needed, then I would support that, too.
When inflation accelerates in 2022, I strongly advocate for an earlier rate hike, and I would support an earlier rate cut ‘if’ it were appropriate.” “These decisions will be driven by incoming data.” (which may not include today’s data) “While I expect rate cuts to be made cautiously as the economy and employment continue to grow, I stand ready to act quickly if needed to support the economy against a backdrop of stable inflation.”
