Gold prices add to record high amid fiscal, tariff concerns
Investing.com -- Federal Reserve Governor Christopher Waller stated Wednesday that he believes the central bank should cut interest rates at its next meeting, adding that he foresees "multiple cuts over the next few months."
Speaking on CNBC, Waller emphasized his desire to "get ahead of having labor market go down" and noted that the Fed doesn’t need to follow "a lock sequence of cuts" but can adjust the pace as needed.
Regarding tariffs, Waller described them as a tax that will lead to slower economic growth this year. However, he clarified that tariffs "aren’t going to cause long-run inflation" and predicted that inflation will "start moving back to 2% in 6-7 months." He also stated that inflation expectations remain anchored.
Waller observed that the 10-year Treasury yield "has been kind of anchored" and mentioned that his colleagues at the Fed have "a much higher neutral rate" than he does.
On the topic of Fed independence, Waller stressed that it is "critical for everything we do" and expressed confidence that "no matter what, Fed will maintain independence." He also addressed the Cook case, saying courts will decide soon how it will play out.
When asked about potential leadership changes, Waller confirmed he hasn’t met with Scott Bessent regarding the Fed chair position and is not scheduled to do so.
Looking ahead, Waller stated, "I don’t see a recession in my forecast at all."