Surprise Fed Statements: March Could See Interest Rate Cut

Federal Reserve Governor Christopher Waller spoke about potential interest rate cuts in 2025.

He said December's inflation data was promising, and if trends continue, a rate cut could happen in the first half of the year.

A rate cut in March is possible if inflation keeps dropping.

Waller mentioned there might be more rate cuts (3-4) this year if inflation improves.

He is optimistic about inflation returning to the target but noted his views may differ from other Fed officials.

Waller said the labor market is strong but not overheated, based on recent job data.

He believes future tariffs by a potential President Trump likely won’t cause higher inflation or have a big impact on it.