Federal Reserve Governor Christopher Waller said on Tuesday that if inflation consistently declines, there is no reason to insist that interest rates need to remain really high.
In a conversation with Michael Strain, Director of Economic Policy Studies, at the American Enterprise Institute, Waller added that there are good economic arguments that if inflation continues to decline for several more months, it is possible to lower the policy rate. Earlier, Waller delivered a speech.
Market reaction
Following these comments, the US Dollar Index accelerated its decline, falling below 103.00 to reach fresh lows not seen in months. Meanwhile, stock prices on Wall Street climbed to new daily highs, and there was a significant slide in Treasury yields.
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