According to Jinshi Data, analyst Cameron Crise said that Waller's speech caused market volatility. One of the eye-catching remarks was that he would support strong action or early rate cuts, but the market ignored the role of "if" in the sentence.
Waller explained his optimistic outlook for continued economic expansion, noting that the Sam rule is descriptive rather than predictive. He hinted that more data is needed to determine the ultimate magnitude and pace of easing, and that policymakers have not yet decided how aggressive to be.
Combined with Williams' remarks, there is still no evidence that the FOMC will cut interest rates by 50 basis points. Waller also mentioned that when implementing interest rate cuts, there is still room to maintain certain restrictions to ensure that inflation moves towards the 2% target.
