By Ovunc Kutlu
ISTANBUL (AA) - US Federal Reserve Governor Christopher Waller said interest rate cuts should not be rushed as the central bank closely monitors incoming inflation figures.
"Time will tell whether inflation can be sustained on its recent path and allow us to conclude that we have achieved the FOMC's price-stability goal," he said Tuesday during a speech at The Brookings Institution in Washington, D.C. "Time will tell if this can happen while the labor market still performs above expectations."
Waller said the slowing inflation figures in last few months is allowing the Federal Open Market Committee (FOMC) to consider cutting interest rates 2024, but added: "However, concerns about the sustainability of these data trends requires changes in the path of policy to be carefully calibrated and not rushed. In the end, I am feeling more confident that the economy can continue along its current trajectory."
The Fed governor's comments came after annual consumer inflation came in at 3.4% in December, following a 3.1% gain in November; while producer inflation annually rose 1% after showing a 0.8% year-on-year gain the month before.
The central bank made 11 interest rate increases from March 2022 through July 2023 to fight record inflation that climbed during the summer of 2022 to its highest in more than four decades.
Its projections materials released on Dec. 13 indicated that the bank could make at least three interest rate cuts of 25 basis points each during 2024.