Top Fed official says there is no rush to cut interest rates

WASHINGTON - United States Federal Reserve governor Christopher Waller said there is no rush to lower interest rates, emphasising that recent economic data warrants delaying or reducing the number of cuts seen in 2024.

Dr Waller called recent inflation figures "disappointing" and said he wants to see "at least a couple of months of better inflation data" before cutting.

He pointed to a strong economy and robust hiring as further reasons the Fed has room to wait to gain confidence that inflation is on a sustained path towards the 2 per cent target.

"In my view, it is appropriate to reduce the overall number of rate cuts or push them further into the future in response to the recent data," Dr Waller said in prepared remarks on March 27 before the Economic Club of New York titled There's Still No Rush.

Treasuries slipped in Asia trading as markets digested Dr Waller's comments, with the policy-sensitive two-year yield climbing about four basis points. The short-dated bond benchmark has risen more than 35 basis points in 2024 as traders pushed back expectations for Fed cuts.