Summary：**Fed Official Waller Signals Inflation Could Ease Without Further Rate Hikes** *Waller’s outlook s

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**Fed Official Waller Signals Inflation Could Ease Without Further Rate Hikes**
*Waller’s outlook suggests potential economic stability, reducing the need for rate hikes, but market uncertainty persists, impacting future policy. The post Fed’s Waller sees path inflation without rate hikes appeared first on Crypto Briefing.*

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### Introduction
Federal Reserve Governor Christopher Waller recently indicated that inflation may cool sufficiently to allow the central bank to pause its tightening cycle. Speaking at a Washington‑based economic forum, Waller noted that recent data trends point to a gradual easing of price pressures, which could diminish the urgency for additional interest‑rate increases. His remarks come amid a mixed macro‑economic backdrop, where slowing consumer spending and moderating wage growth contrast with lingering supply‑chain frictions.

### Key Developments
Waller highlighted three primary factors supporting his view:

1. **Declining Core PCE Inflation** – The personal consumption expenditures price index, excluding food and energy, has slipped to 2.8% year‑over‑year, nearing the Fed’s 2% target.
2. **Softening Labor Market Indicators** – Job openings have fallen for three consecutive months, and average hourly earnings growth has decelerated to 4.1%, suggesting reduced wage‑push inflation.
3. **Improved Supply‑Chain Conditions** – Global shipping costs and semiconductor lead times have both retreated from their 2022 peaks, alleviating upstream cost pressures.

These developments, Waller argued, create a scenario where the current policy rate—now at 5.25%–5.50%—could be sufficient to anchor inflation expectations without further hikes.

### Industry Analysis
Analysts caution that Waller’s optimism hinges on the persistence of these trends. While the core PCE reading is encouraging, services‑sector inflation remains sticky, particularly in housing and healthcare. Moreover, geopolitical tensions—such as the ongoing conflict in Eastern Europe and fluctuating energy prices—pose upside risks that could reignite price pressures.

Market participants have responded with cautious optimism. Futures contracts imply a 60% probability of a rate hold at the September meeting, up from 45