🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Waller signals Fed is open to bigger cuts, doesn't expect recession

Published 06-09-2024, 08:40 pm
© Reuters
US500
-
DJI
-
NDAQ
-
IXIC
-
US10YT=X
-
DXY
-

Federal Reserve Governor Christopher Waller said today that the current economic data warrants action, suggesting that the Federal Reserve is fully prepared to cut rates.

While speaking at the University of Notre Dame, Waller pointed to the latest jobs data as evidence of a labor market aligning with modest economic growth.

“Today’s job report continues the longer-term pattern of a softening of the labor market that is consistent with moderate growth in economic activity,” he said.

“While the labor market has clearly cooled, based on the evidence I see, I do not believe the economy is in recession or necessarily headed for one soon,” Waller added.

"The time may come for the Fed to act forcefully and quickly to cut interest rates, but it will be based on the data “and not on any pre-conceived notion of how and when the FOMC should act,” Waller said.

Waller said that the August jobs data, which was released on Friday, showed a continuation of the labor market's softening trend. This trend, he noted, is in line with moderate growth in economic activity.

He added that the Federal Reserve may have to 'front-load' cuts, a comment that suggests the Fed could cut rates by 50 basis points at the upcoming meeting in September.

Despite the cooling of the labor market, Waller does not see the economy as being in a recession or on the verge of entering one imminently.

Waller's remarks come at a time when the Federal Reserve is closely monitoring economic indicators to gauge the appropriate monetary policy.

Citi economists said today that they expect the Fed to cut by 50 bps in September.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.