'There's Still No Rush'

So said Federal Reserve Governor Christopher Waller this evening at the Economic Club of New York in a speech titled “There’s Still No Rush.” He noted that the latest inflation figures were "disappointing" and that the economy and labor market remain strong. So, in his opinion, "it is appropriate to reduce the overall number of rate cuts or push them further into the future in response to the recent data." The Summary of Economic Projections released last week by the FOMC showed that nine of the 19 participants projected two cuts or fewer this year. Nevertheless, Fed Chair Jerome Powell sounded more dovish in his presser last week and dismissed the inflation news as "bumps."

We agree with both Powell and Waller: Inflation should continue to moderate as Powell implied, so what's the rush to lower interest rates if the economy is strong?