A Clear Signal for the Next Meeting to Rate Cuts

Reiterating his earlier stance, Waller stated that the Fed should move ahead with a rate cut at its upcoming policy meeting. He also suggested that multiple rate reductions could follow in the months ahead, depending on economic data.

Flexibility in the Pace of Cuts

Waller emphasized that the Fed does not need to stick to a rigid pace when adjusting interest rates. “We can always recalibrate the speed of cuts,” he explained. This underscores the central bank’s data-driven approach, allowing it to adapt policy in response to evolving conditions.

Concerns Over the Labor Market

Another key point raised by Waller was the recent softening in the labor market. He stressed that the Fed must act to prevent further deterioration, highlighting the central bank’s dual mandate of maintaining price stability while supporting employment.

Inflation Outlook for Rate Cuts

While acknowledging that inflation could see slight upward moves in the short term, Waller dismissed concerns of a lasting rebound. He expects inflation to move closer to the Fed’s 2% target over the next six months, reinforcing confidence in the current policy path.

Growth Expectations: Slowdown, Not Recession

Waller ruled out the likelihood of a recession but noted that U.S. economic growth is likely to decelerate. He also argued that while tariffs may weigh on growth this year, they are unlikely to create long-term inflationary pressures.

Addressing Fed Chair Speculation

Finally, Waller clarified that he has had no discussions regarding the possibility of becoming Fed Chair, putting an end to speculation surrounding his potential candidacy.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Fed’s Christopher Waller: “A Rate Cut Should Come at the Next Meeting” appeared first on Coin Engineer.

Monthly PPI Falls -0.5%, Defying Expectations

The Monthly Producer Price Index (PPI) came in at -0.5%, well below the market forecast of 0.2%. The previous month’s reading stood at -0.4%, indicating sustained downward pressure on producer prices.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Meanwhile, the Yearly PPI was reported at 2.4%, slightly below expectations of 2.5%, and down from the previous reading of 2.7%. The data suggests that inflation may be cooling faster than anticipated, potentially giving the Federal Reserve more room to consider rate cuts.

Jobless Claims Match Expectations

In line with forecasts, initial jobless claims were reported at 229K, up slightly from the previous week’s 228K. While the labor market remains stable, inflation data took center stage in driving investor sentiment.

Following the economic releases, Bitcoin climbed from 102,430 $ to 102,805 $, marking a 0.40% increase. The crypto market welcomed the lower inflation figures, with BTC showing resilience amid broader economic uncertainty.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post U.S. Data Released: Bitcoin Reacts Upward! appeared first on Coin Engineer.

Mericle’s comments follow the release of the June Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge, which came in at 2.5% year-over-year, aligning with expectations. This data point has reignited speculation about whether the Fed might accelerate its timeline for interest rate cuts.

When asked about the likelihood of a rate cut in September, Mericle indicated sympathy for the idea but expressed some doubt. He suggested that the Fed might hint at an upcoming rate cut in its next meeting but cautioned that it was unlikely to be explicitly planned for September.

Mericle believes the Fed will wait until the release of July inflation data before making a definitive decision. If the data is deemed acceptable, he expects the Fed to signal a rate cut in September.

Despite the volatility in inflation data this year, Mericle remains confident in the Fed’s inflation strategy. He pointed to the rebalancing of the labor market and the normalization of inflation expectations since late last year.

Mericle also emphasized the Fed’s dual mandate and the recent shift in focus towards the Fed due to softer labor market data. While characterizing the labor market data as mixed, he noted the 2.8% GDP growth in the last quarter and the continued strong job gains.

Looking ahead, Mericle anticipates a need for approximately 150,000 jobs per month to stabilize the unemployment rate. He noted the mixed signals and suggested that the upcoming jobs report would likely receive more attention than usual due to the upward trend in the unemployment rate.

The post Goldman Sachs Sees Potential for Fed Rate Cuts, But Cautions on Timing appeared first on Coin Engineer.