Fed's Waller Believes Further Cuts 'Will Be Appropriate'

The transcript discusses the potential impact of tariff proposals on inflation and monetary policy. It suggests that tariffs may not significantly affect inflation, thus not altering the monetary policy path. The speaker supports continued policy rate cuts in 2025, contingent on inflation progress and labor market stability. The FOMC has varied views on rate cuts, with some advocating for no cuts and others for multiple cuts. The extent of easing will depend on data regarding progress towards a 2% inflation target.

What is the speaker's expectation regarding the impact of tariffs on inflation?

• Tariffs will have a minor and temporary effect on inflation.

• Tariffs will decrease inflation.

• Tariffs will have no effect on inflation.

• Tariffs will significantly increase inflation.

What condition does the speaker mention for supporting continued rate cuts in 2025?

• A stable stock market.

• A decrease in unemployment rates.

• Increased consumer spending.

• Significant progress in inflation control.

According to the speaker, what will determine the pace of future rate cuts?

• The performance of the housing market.

• The global economic conditions.

• The progress made on inflation and labor market stability.

• The level of government debt.

What is the range of views within the FOMC regarding policy rate cuts?

• All members agree on two cuts.

• Some members advocate for no cuts, while others suggest up to five cuts.

• Some members suggest increasing rates.

• All members agree on five cuts.

What is the primary factor that will influence future easing decisions according to the speaker?

• The level of foreign investment.

• The data on progress towards the 2% inflation target.

• The political climate.

• The state of international trade agreements.