Recent data suggesting a slowdown in the economy and a continued moderation in inflation means the US Federal Reserve’s policy is in the right place, Federal Reserve Governor Chris Waller said at an event in Washington , DC.
“Something seems to be giving way, and that’s the pace of the economy,” Waller said, noting that October data and current forecasts for the rest of the fourth quarter indicate an easing of activity. Inflation data, he said, are also moving in the right direction.
Responding to questions after his prepared remarks, Waller also said that if inflation were to continue to decline, there is a good case for cutting rates within a few months.
Waller is ranked as the third most hawkish member of the Federal Open Market Committee (FOMC) by InTouch Capital Markets, so any dovish stance on his part is of notable importance.
Already higher in the session, the price of bitcoin (BTC) rose more than another 1% following Waller’s comments, even as colleague Michelle Bowman, speaking at another event, said she believes rates will have to rise to generate inflation . to the heel. At the time of this publication, bitcoin was changing hands at $37,700.
Traditional markets are also taking note: The 10-year Treasury yield fell four basis points to 4.35%, the dollar index fell 0.4% and gold rose 1.3% to $2,038 an ounce.
