The 50 bps cut was the right move

Christopher Waller, a member of the Federal Reserve Board of Governors (Fed), noted on Friday that while the Fed’s decision to cut interest rates by 50 bps accelerated, the Fed’s data-driven approach could mean the next meeting will be a pause in time what decision makers are waiting for additional data. .

Key highlights

(50 bps rate cut) which is the right call.

We are at the point where the economy is strong, we want to keep it that way, 50 bps right policy action to do that.

Regarding 25 bps vs 50 bps, my speech two weeks ago said 25 bps was a good idea but open to 50. The inflation data during the lock pushed me to a 50 bps cut.

The CPI ratio and the PPI ratio spilling over into PCE inflation was my consideration.

Inflation is softening much faster than we thought it would.

If the dates work out, you can imagine going on the next date or two.

If the labor market worsens and inflation data softens faster, we could do more.

We might even take a break, depending on the dates.

We see a lot of room to move in the next 6-12 months.

Inflation is potentially on a lower path than we expected.

I’m a little more concerned that inflation is weaker.