Fed's Waller urges patience on rate cuts, seeks more disinflation evidence
Fed Governor Waller signals willingness to hold rates steady while awaiting more disinflation data, paraphrasing John Lennon.
Federal Reserve Governor Christopher Waller indicated on Thursday that he is inclined to hold interest rates steady for now, preferring to wait for additional evidence that inflation is cooling before supporting any policy easing.
Speaking at a Varta Wire NEXT Newsmaker event in Washington, Waller said he wants to see whether the recent slowdown in price pressures continues. In a lighthearted reference to the Beatles song, he paraphrased John Lennon: "Give disinflation a chance," adding that "we can wait one meeting" to assess incoming data.
Waller stressed that his caution is not a gamble. "You want to take a chance to see if disinflation continues. But I'm not taking a big chance," he said, suggesting that waiting one more policy meeting carries limited risk while offering clearer insight into the inflation trajectory.
His remarks come as investors and analysts debate the timing of potential rate cuts, with some expecting action as soon as September. Waller's comments signal that the central bank remains data-dependent and willing to delay moves until it sees sustained progress on inflation.