Fed's Waller: It's too soon to tell if more policy action needed

<ul><li>More action on policy rate would be needed if demand, and economic activity keep up recent pace</li><li>We can wait, watch and see before making definitive news on policy path</li><li>Ir real economy slows, we can hold policy steady</li><li>Past few months' data has been overwhelmingly positive for employment and inflation goals</li><li>I will be watching how recent long-term rate rise evolves and its impact on economy and financial conditions</li><li>I will be patient in waiting for data to document how spending evolves</li><li>Anticipate 'unusually tight' labor market to continue loosening, but watching closely</li><li>Will watch next 'several' inflation reports for clearer indication on trajectory to 2%</li></ul><p>The 'several' line on inflation reports suggests that he will be waiting and watching beyond the December FOMC.</p><p>The market is comfortable that the Fed will be on hold and not raise rates further, the question is how long they stay at these levels. Current pricing for year-end 2024 cuts is down to 50 bps from 80 two weeks ago.</p>

This article was written by Adam Button at www.forexlive.com.