Fed's Waller Warns: Act Now or Risk Missing Rate Cuts as US Economy Booms
The US economy is booming, but Fed Governor Christopher Waller warns that the central bank risks waiting too long to cut interest rates. Meanwhile, the stock market today opened weakly, with tech stocks under pressure, and investors await Friday's inflation update.
Despite a robust economy, with GDP growth revised up to 3.8 percent in the second quarter, Waller cautioned that the Fed must act faster. He warned that delaying rate cuts could lead to risks, despite the strong economy leaving less room for cuts.
The US stock market reflected investor anxiety on Thursday. The S&P 500 dropped around 0.9 percent, dipping below 6,600 points. Tech stocks, such as Oracle and Nvidia, continued to face pressure. Investors are nervously watching the upcoming inflation update, scheduled for Friday.
On a positive note, initial jobless claims decreased to 218,000, indicating that the labor market remains stable and strong.
Waller's warning highlights the Fed's delicate balancing act in managing the economy. The stock market's performance and investor anxiety reflect the uncertainty surrounding inflation and the Fed's next move. The upcoming inflation update will provide crucial insights into the economic landscape.
