“[A]t present I lean toward supporting a cut to the policy rate at our December meeting. But that decision will depend on whether data that we will receive before then surprises to the upside and alters my forecast for the path of inflation,” Waller said in prepared remarks at a conference on the Fed’s framework review in Washington sponsored by the American Institute for Economic Research.
The Fed governor acknowledged signs of stalling inflation, but said there was “no indication that the pace of price increases for key service categories such as housing and non market services should remain at their current levels or increase.”
Still, the decision to back a rate cut at the Dec. 17-18 meeting would “depend on whether data that we will receive before then surprises to the upside and alters my forecast for the path of inflation.”
Looking ahead to data later this week included the nonfarm payrolls report due Friday, the Fed governor said he expected to see a rebound in job gains for November.
Following the hurricane-related hit to job gains in October, Waller said he expects to see a “rebound” in the November employment report.
If the incoming data between today and the next meeting, however, “surprisingly suggests our forecast of slowing inflation and a moderating the still solid economy are wrong, then I’ll be supportive of holding the policy [rate],” Waller addded.
Source: Economy - investing.com
