Fed’s Waller: Will support further cuts in 2025 but pace will depend on inflation progress

• Will support further cuts in 2025 but pace will depend on inflation progress.
• Inflation will continue to make progress towards 2%.
• Base effects will improve inflation in 2025.
• Recent monthly and short-term data indicates improvement to come.
• Although the recent inflation progress has been slow, much of that is due to imputed prices for housing and non-market services that are less reliable guide to underlying price pressures.
• Geopolitical conflicts and tariffs could be a source of renewed price pressure.
• The economy is overall on a solid footing, nothing suggests labour market will weaken dramatically in coming months.
• Central bankers have a broad set of challanges ahead, from aging populations to geopolitical conflicts and challanges to globalization.
• Do not expect tariffs to produce persistent inflation and thus are not likely to influence views on appropriate monetary policy.

This article was written by Giuseppe Dellamotta at www.forexlive.com.