AFP :
The Federal Reserve’s big interest rate cut this week is not a sign that the US economy is “falling behind,” Fed governor Christopher Waller said in an interview on Friday.
“It’s not about reacting to, or falling behind or anything like that,” he told CNBC. “I do not believe we’re behind.” Waller was responding to arguments that the central bank should not do a half percentage point rate cut — instead opting for a smaller reduction — as this would be a sign of economic weakness.
Citing a speech he made earlier this year, Waller stressed that the Fed could cut rates even if the economy was doing fine. “And that’s the position we’re in,” he said, noting that inflation is cooling while the labor market remains solid. The Fed cut its key lending rate by half a percentage point this week, marking its first reduction for more than four years.
