Fed’s Waller Hints at Rate Cuts in 2024 Amid Cooling Inflation; Others Prefer to Wait

Investors preparing for loosening of monetary conditions next year.

Christopher Waller testifies before the Senate Banking, Housing, and Urban Affairs Committee during a hearing on his nomination to be member-designate on the Federal Reserve Board of Governors, in Washington, on Feb. 13, 2020. Sarah Silbiger/Getty Images

The Federal Reserve might begin cutting interest rates next year if inflation continues to cool, according to one member of the U.S. central bank’s Board of Governors.

Fed Gov. Christopher Waller suggested during remarks at the American Enterprise Institute (AEI) on Nov. 28 that monetary authorities could lower the benchmark fed funds rate if inflation continues to decline steadily toward policymakers’ 2 percent target in a sustainable manner.