Top Federal Reserve officials stated today that the U.S. central bank is “CLOSER” to cutting interest rates.

Top Federal Reserve officials said on Wednesday the U.S. central bank is “CLOSER” to cutting interest rates given inflation's improved trajectory and a labor market in better balance

• Fed Governor Christopher Waller and New York Fed President John Williams both noted the shortening horizon toward looser monetary policy.
• Richmond Fed President Thomas Barkin said he is “very encouraged” that declines in inflation had begun to broaden.
• All three policymakers who spoke on Wednesday were “pointing to September” for a start to the policy easing.
• Fed Chair Jerome Powell – to note their increased confidence that the disinflationary trend that began last year is continuing.
• Price pressures appear to be easing across the board, the Fed officials said, with goods prices falling, housing cost increases slowing, and more moderate wage growth feeding into a long-awaited easing of price increases in the services sector.
• The U.S. central bank “may well be able to achieve the soft landing” of bringing down inflation without triggering a painful recession and sharp rise in unemployment, Waller said on Wednesday.

https://www.reuters.com/markets/rates-bonds/feds-williams-suggests-rate-cut-could-be-warranted-coming-months-wsj-reports-2024-07-17/