Fed Official Predicts Inflation Decline By 2025, Potential Rate Cuts

According to Odaily, Federal Reserve Governor Christopher Waller stated on Wednesday that inflation is expected to continue decreasing by 2025, which could allow the Fed to further reduce interest rates, although the pace remains uncertain. Waller noted that while inflation appeared to have stalled above the Fed's 2% target in the final months of 2024, market-based inflation estimates and short-term inflation readings suggest that inflation in the United States is easing. Waller remarked, "This minimal progress has led to calls for slowing or halting rate cuts. However, I believe that in the medium term, the inflation rate will continue to move towards the 2% target, making further rate cuts appropriate." He did not specify how many times he believes rates should be cut this year but highlighted that Fed officials have a wide range of views, from no cuts to as many as five. Waller expressed confidence in the strength of the U.S. economy, stating, "There are no signs in the data or forecasts indicating that the job market will significantly weaken in the coming months."