The U.S. is close to achieving its 2% inflation goal, according to Federal Reserve Governor Christopher Waller, although he cautioned against rushing interest rate cuts, emphasizing the need for a methodical and careful approach. “The key thing is the economy is doing well. It is giving us the flexibility to move carefully and methodically. We can see how the data comes in, see if progress is being sustained,” Waller said in comments in an online discussion organized by the Brookings Institution. “The worst thing we’d have is it all reverses after we’ve already started to cut. We really want to see evidence that this progress . . . in the real data and the inflation data continues. I believe it will.” Mr. Waller’s remarks reflect the ongoing debate within the Fed, with a shift towards managing a more balanced set of risks to maintain maximum employment.
