Federal Reserve Considers Cautious Approach to Interest Rate Cuts

According to PANews, Federal Reserve Governor Waller has expressed the need for interest rate cuts, emphasizing a cautious approach. He is open to a 25 basis point reduction at the upcoming meeting. Waller highlighted the importance of caution due to potential labor market rebounds or GDP weakening. The Federal Reserve plans to proceed gradually, avoiding aggressive or rapid actions, with incremental steps of a quarter basis point. He noted that private credit contains significant equity and is not highly leveraged, suggesting that while some may incur losses, it should not be viewed as a major risk related to the stock market.