Fed Governor Seeks ‘More Caution’ on Rate Cuts

‘Whether or not this month’s inflation reading is just noise or if it signals ongoing increases, is yet to be seen,’ Fed Governor Christopher Waller said.

Federal Reserve Gov. Christopher Waller testifies before the Senate Banking, Housing, and Urban Affairs Committee in Washington on Feb. 13, 2020. Sarah Silbiger/Getty Images

The Federal Reserve should carefully consider future interest rate reductions given that the U.S. economy is showing signs of strength, according to Christopher Waller, a member of the bank’s board of governors.

Last month, the Fed cut interest rates by 50 basis points, pushing the benchmark federal funds rate down to a range of 4.75 percent to 5 percent. Officials expect to implement an additional 50-basis-point cut this year. During an Oct. 14 Federal Open Market Committee conference, Waller pointed out that recent economic data have exceeded expectations.