Fed's Waller: The Fed is in position as early as July for cuts

In an interview with CNBC on Friday, Federal Reserve (Fed) Governor Christopher Waller said that the Fed is in a position to cut the policy rate as early as July, per Reuters.

Key takeaways

"Central banks should look through tariff effects on inflation."

"I do not think inflation impact from tariffs will be big, trend is looking good."

"Not sure if committee would go along but the data is good, unemployment is low, inflation is close to target."

"The Fed has room to bring rates down and then can see what happens with inflation."

"The process should start slow to be sure there are no surprises, if there is a shock the fed could pause."

"So far the data has been fine, with no reason to wait much longer to cut."

"The tariffs should pose a one-off level effect on prices and not be a persistent boost to inflation."

"The Fed has been on pause for six months waiting for an inflation shock that has not arrived."

"The job market is solid, but starting to see things like high unemployment for recent graduates."

"Seeing job creation coming down and other things that are suggesting the labor market is getting weaker."

"The fed should not wait for the job market to crash in order to cut rates."

Market reaction

The US Dollar (USD) Index edged lower with the immediate reaction to these comments and was last seen losing 0.15% on the day at 98.63.

These comments received a dovish score of 3.4 from FXStreet Speechtracker.