Fed's Waller commented the US monetary policy and economy signalling that Fed will be able to cut rates as early as in July. Here is the breakdown of Waller's comments.
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Workers are not in a position to demand higher wages in response to tariffs, a reason not to worry about second-round effects.
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The Fed has a mandate to worry about unemployment and inflation, not to provide cheap financing for the federal government.
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Tariffs will not be completely passed through; a 10% tariff on all imports would not have much impact on overall inflation.
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I don't want to wait for the job market to tank before cutting rates.
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Seeing job creation coming down and other signs suggesting the labour market is getting weaker.
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The labour market is okay, but not as strong as in 2022.
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The job market is solid, but we are starting to see things like high unemployment among recent graduates.
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Inflation persistence from tariffs is a valid concern.
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The tariffs should pose a one-off level effect on prices and not be a persistent boost to inflation.
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The process should start slow to be sure there are no surprises; if there is a shock, the Fed could pause.
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The Fed is in a position as early as July for cuts.
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The Fed has room to bring rates down and then observe what happens with inflation.
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I am not sure if the committee would go along, but the data is good: unemployment is low, inflation is close to target.
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Central banks should look through tariff effects on inflation.
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I do not think the inflation impact from tariffs will be significant; the trend is looking good.
Indices on Wall Street gained after Fed's Waller remarks signalling a dovish stance from the Fed.
