Federal Reserve Signals Potential for Multiple Interest Rate Cuts in 2025

Fed Governor Christopher Waller suggests up to four rate cuts could occur this year if inflation continues to ease as expected.

Fed Governor Christopher Waller stated that the Federal Reserve could implement up to four interest rate cuts in 2025, contingent on favorable inflation data.
The first rate cut may happen in the first half of the year, with March or later being potential starting points depending on economic conditions.
Waller expressed optimism about inflation trends, citing recent data showing slight easing in core inflation, though it remains above the Fed's 2% target.
Market expectations for rate cuts have shifted, with traders now seeing higher probabilities for reductions starting in May or June.
Despite Waller's optimism, other Fed officials remain cautious, with only two cuts officially projected for 2025 during the December policy meeting.