ChainCatcher news, Fed Governor Waller said that recent economic data shows that policymakers do not need to be as urgent as last month's meeting when dealing with subsequent interest rate cuts. "I think the overall data shows that monetary policy should be more cautious in the pace of interest rate cuts than at the September meeting," Waller said in a prepared speech at a conference held at the Hoover Institution in Stanford, California on Monday. He added that if the current economic conditions continue, "we can shift policy to a neutral stance at a prudent pace." The neutral policy rate is an interest rate that neither promotes nor suppresses economic growth. Waller also said that recent data - including upward revisions to economic growth and an increase in job vacancies - indicate that the extent of the economic slowdown may not be as expected. At the same time, Waller said his basic expectation is to gradually reduce interest rates next year.
The Fed will make its next rate decision at the end of the FOMC meeting on Nov. 6-7. During a question-and-answer session after the speech, Waller declined to provide details on the "gradual" pace of rate cuts.
