The Governor of the U.S. Federal Reserve, Christopher Waller, stated that the central bank may cut interest rates as early as July.
Waller mentioned that the current benchmark interest rate is about 1.25 to 1.5 percentage points above the estimated neutral level, and he sees room for a reduction.
He added that economic data shows that GDP growth and inflation are close to the targets set by the Federal Reserve.
However, Waller emphasized that the Federal Reserve's mission is to address unemployment and price stability, not to provide cheap financing for the U.S. government.
Waller's remarks came following the decision of Federal Reserve policymakers to keep interest rates unchanged in their fourth consecutive meeting.
Earlier, Jerome Powell, the Chairman of the Federal Reserve, stated that they still want to see the impact of the tariffs imposed by President Trump before making further decisions regarding interest rate cuts.
Source: Bloomberg
