Fed's Waller - November FOMC statement designed to signal potential step down to 50

Federal Reserve Governor Christopher Waller is a member of the Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term Board of Governors. The governors vote at each Federal Open Market Committee.

Waller is speaking on his economic outlook before the Australasia Conference, in Sydney, Australia

Earlier:

Fed's Waller dismisses US CPI report as 'just one data point', markets 'way out in front'

More:

• The FOMC statement in November was designed to signal a potential step down to 50 basis points. "We knew the markets were going to jump for joy." So the Fed used Powell's press conference to "drive the point home" that it's the ultimate level for rates that matters.

• US housing markets "will be okay"
• Household balance sheets remain in good shape
• Was always going to be a communications challenge to signal slowdown in the pace of hikes, fed "is not softening"
• Signal was to pay attention to the endpoint not the pace of rate increases, and until inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term slows the endpoint is "a ways out"

• Fed keeping an eye on the balance sheet, don't want to "crush" holdings in a way that will cause problems in markets
• A "benchmark" target may be about 8 to 10 percent of GDP