Fed’s Waller: If inflation constantly declines, there is no reason to insist in really high rates

Matías Salord FXStreet

Federal Reserve Governor Christopher Waller said on Tuesday that if inflation consistently declines, there is no reason to insist that interest rates need to remain really high.

In a conversation with Michael Strain, Director of Economic Policy Studies, at the American Enterprise Institute, Waller added that there are good economic arguments that if inflation continues to decline for several more months, it is possible to lower the policy rate. Earlier, Waller delivered a speech.

Market reaction

Following these comments, the US Dollar Index accelerated its decline, falling below 103.00 to reach fresh lows not seen in months. Meanwhile, stock prices on Wall Street climbed to new daily highs, and there was a significant slide in Treasury yields.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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