Federal Reserve governor Christopher Waller said the central bank should cut interest rates further if inflation makes more progress back toward target.

Federal Reserve Governor Christopher Waller said recent economic data support keeping interest rates on hold, but if inflation behaves as it did in 2024, policymakers can get back to cutting “at some point this year.

A U.S. Federal Reserve governor says she wants to see more data on inflation before advocating additional interest rate cuts.

January inflation ran hot, and the odds of Fed interest rate cuts fell as Consumer Price Index total CPI inflation accelerated to 3.0%, the highest rate since June 2024.

Federal Reserve Governor Michelle Bowman said on Monday she wanted increased conviction that inflation will decline further this year before lowering interest rates again, particularly given uncertainty around the impact of the Trump administration's new trade and other policies.

Traders dialed back bets on interest-rate cuts after Wednesday’s hotter-than-expected inflation report. In recent trading, interest-rate futures suggested that investors now see a roughly 30% chance that the Federal Reserve doesn’t cut rates at all this year,

The Fed official called for more progress on inflation before the central bank engages in further interest rate cuts.

Traders of short-term interest-rate futures on Friday now expect the Federal Reserve to cut interest rates just one time this year, backing away from earlier bets on two rate cuts starting in June, after government data showed the labor market remains strong and a closely-watched survey showed a jump in consumers' inflation expectations.