Investor sentiment has turned gloomier this week, but even if no economic downturn materializes, progress on inflation should allow the Fed to continue cutting interest rates, Waller said.

Federal Reserve Governor Christopher Waller said on Thursday that a case for interest rate cuts later this year based on easing inflation still seems most likely to him, but noted that a cut this month is not likely.

Federal Reserve Governor Christopher Waller said he wouldn’t support lowering interest rates in March, but sees room to cut two, or possibly three, times this year.