Fed's Waller: I don't see case for a March rate cut
|Federal Reserve (Fed) Governing Board Member Christopher Waller noted on Thursday that recent data has made it more difficult to argue in favor of additional rate cuts heading into the tail end of the first quarter.
Key highlights
Not all tariffs are passed through.
Fed policy is still restrictive.
Fed can cut rates for positive and negative reasons.
I'm still believing good rate cut cast is in place.
Seeing some signs of softer data.
We have to respond to hard data.
I'm waiting to see if weakness in soft data shows up in broader statistics.
The Fed still needs more data to understand economic outlook.
I don't see case for a March rate cut.
I could see rate cuts after the March Fed meeting.
If February data comes in good, I will feel better about inflation.
A median of two cuts for this year remains reasonable.
80K to 100K is likely break even for the job market.
Job market conditions more closely resemble pre-pandemic times.
Past trump tariffs were more modest, and very little was passed through.
It's very hard to eat a 25% tariff.
I'm particularly interested in market pricing of inflation expectations.
Markets are not pricing in any serious long-term inflation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.