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Waller’s statements on disinflation
Christopher Waller, a member of the Federal Reserve, recently expressed optimism about the possibility of lower interest rates in the first half of 2025. This scenario is linked to inflation data, which, according to Waller, show positive signs. In particular, the slowdown in background price pressures, which emerged last month, could influence future central bank decisions
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Interest rate prospects
Waller stressed that if the inflation data continues to be favorable, it is reasonable to expect that the Federal Reserve can proceed with rate cuts.
He also mentioned the possibility of surgery as early as March, if conditions permit. This approach reflects a strategy of closely monitoring economic trends, with the objective of maintaining price stability.
Impact on financial markets
Waller’s statements had an immediate impact on the financial markets, with the yield on two-year government bonds falling to 4.25%. This decline is indicative of investor expectations regarding a possible easing of monetary policy. The market reaction suggests that operators are ready to bet on a more favorable future for the economy, provided that inflation data continues to show signs of improvement
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Conclusions on future monetary policies
In summary, Waller’s statements highlight a potential change in the Federal Reserve’s monetary policy. With an increasing focus on inflation data, the central bank may take more aggressive steps to stimulate the economy. Investors and analysts will continue to closely monitor upcoming economic reports, as they could influence the Fed’s future decisions and, consequently, the overall economic landscape
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