He Federal Reserve Governor Christopher Wallerdeclared on Tuesday that If inflation declines steadily, there is no reason to insist that interest rates remain very high.
In a conversation with Michael Strain, Director of Economic Policy Studies at the American Enterprise Institute, Waller added that there are good economic arguments that if inflation continues to decline for several more months, it is possible to reduce the official interest rate. Previously, Waller gave a speech.
Following these comments, the Dollar Index accelerated its decline, settling below 103.00 and reaching new lows not seen in months. Meanwhile, stock prices on Wall Street rose to new daily highs, and there was a significant drop in Treasury yields.
Source: Fx Street
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