Fed's Waller Urges Caution on Rate Cuts Despite Close Inflation Target

Waller suggests a 'carefully calibrated' approach to rate cuts in 2024, contrasting with market expectations for earlier action.

Fed Governor Christopher Waller indicates that the US is close to achieving its 2% inflation target, but urges caution in implementing rate cuts.
Waller suggests that rate cuts could begin in 2024, but they should be 'carefully calibrated and not rushed'.
Recent data showing increasing inflation and rising employment do not reflect overall economic trends, according to Waller.
Waller's comments contrast with market expectations of rate cuts starting in March, and he emphasizes the need for a 'methodical and careful' approach.
Waller's stance is seen as a response to analysts who believe the Fed should start cutting rates soon, arguing that more data is needed to confirm the sustainability of progress on inflation.