Christopher Waller supports a pause in rate cuts as inflation appears uneven, with January data falling short. He notes that if inflation trends continue similarly to 2024, rate cuts may become appropriate later this year.

According to Waller, current monetary policy limits economic activity and keeps inflation under control. Despite recent improvements, current inflation levels remain too high compared to January 2024.

The FED’s recent decisions have adjusted market expectations. Currently, there is only a 2.5% chance for a minor rate cut in March, reflecting cautious sentiments about the timing of further reductions.