With "inflation back to trend," Federal Reserve Governor Christopher Waller said Thursday he sees the possibility of three or four interest-rate reductions in the first half of 2025, provided the "data cooperates.

Consumer Price Index showed an acceleration to 2.9%, the highest rate since July. With such high inflation, the Fed is unlikely to cut rates in January.

The yield on the 10-year Treasury has recently soared toward its highest level since 2023, injecting nervousness into the U.S. stock market that's knocked indexes from their records.

By Howard Schneider, Ann Saphir WASHINGTON (Reuters) -Inflation is likely to continue to ease and possibly allow the U.S. central bank to cut interest rates sooner and faster than expected, Federal Reserve Governor Christopher Waller said on Thursday in comments that pushed against recent market moves that anticipate a shallower Fed rate path.

If year-on-year total and core CPI consumer inflation rates accelerate, financial markets risk turbulence as investors’ 2025 interest rate cut expectations fall further.

Federal Reserve Governor Christopher Waller said the US central bank could lower interest rates again in the first half of 2025 if inflation data continues to be favorable.

Inflation is likely to continue to ease and possibly allow the Federal Reserve to cut rates sooner and faster than expected, Fed governor Chris Waller said Thursday in comments that pushed against recent market moves that anticipated a shallower Fed rate path.