Federal Reserve's Waller Discusses Stablecoins and Economic Risks

According to Foresight News, Federal Reserve Governor Christopher Waller stated that while stablecoins introduce competition to the payment system, they do not pose a threat. He mentioned that no one from the Trump administration has communicated with him regarding the position of Federal Reserve Chair. Waller highlighted that the economy is facing increased risks and emphasized the need for monetary policy to be closer to a neutral level, favoring a more accommodative policy rate. He noted that the risks of inflation rising are limited, with tariffs expected to temporarily increase inflation, which should gradually subside next year. Without the impact of tariffs, inflation is projected to approach the 2% target. He warned that delaying interest rate cuts could lead to more aggressive measures in the future. A rate cut in July could provide room to maintain rates in subsequent meetings. If core inflation remains controlled and economic growth is sluggish, further rate cuts may be necessary, and action should not be delayed until labor market issues arise.