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 teacher's expectation regarding the effect of tariffs on inflation?

What factors will influence the pace of policy rate cuts in 2025?

What does the median of policy makers imply about the appropriate policy rate this year?

How do the views on further easing vary among the FOMC participants?

What is the bottom line message regarding the appropriateness of more cuts?