A top policymaker at the U.S. Federal Reserve has reiterated his support for cutting interest rates this year, despite concerns over elevated inflation and potential tariffs under the incoming Trump administration. Christopher Waller, a key member of the Fed's board of governors, expressed confidence that inflation will gradually approach the Fed's 2% target in the near future. He also addressed the issue of tariffs, stating that he believes increased import duties are unlikely to have a significant impact on inflation in the current year.
Waller's stance on further rate cuts contrasts with prevailing expectations on Wall Street, where there are apprehensions about persistent high prices. While inflation reached 2.4% in November, Waller pointed out that excluding housing costs, prices are showing signs of cooling. He emphasized his belief that inflation will continue to progress towards the 2% goal over the medium term, warranting additional rate reductions.
