Federal Reserve Board of Governors Member Christopher Waller discussed the FOMC's decision to cut interest rates by 50 bps at its latest meeting during an interview that aired Friday morning on CNBC. He was the first Fed official to comment on the larger than usual rate cut since Chair Jerome Powell's press conference after the meeting ended.
Waller said the 50 bps cut was the right decision become the economy is strong and inflation is coming down, and the Fed wants to keep it that way.
Waller said recent inflation data pushed him in the direction of the larger rate cut. He noted that estimates suggest core PCE is running below target, and that is what push him "over the edge."
Moving forward the Fed will be data dependent. For example, the Fed could pause if inflation progress stalls, and he is open for another large cut if necessary.