Federal Reserve Bank of St. Louis President James Bullard has taken a victory lap of sorts, calling for a rate cut and hinting at future moves that could signal a more aggressive stance by the central bank. In a speech delivered on Tuesday, Waller pointed to market expectations of “an additional one or two cuts at the final two meetings of 2025,” suggesting that the Fed may be preparing for a more accommodative policy stance in the coming months.

Waller’s comments come as no surprise, given the recent economic data and the ongoing debate within the Fed about the appropriate path forward for monetary policy. With inflation remaining subdued and economic growth slowing, many Fed officials have expressed a willingness to take action to support the economy. Waller’s speech is the latest indication that the Fed may be preparing to cut interest rates in the coming months, potentially setting the stage for a more aggressive easing of monetary policy.

It’s worth noting that Waller’s comments are not without controversy, as some Fed officials have expressed concerns about the potential risks of cutting interest rates too aggressively. However, with market expectations now pointing to multiple rate cuts in the coming months, it’s clear that the Fed is taking a more proactive approach to supporting the economy.

Waller’s speech is a significant development in the ongoing debate about monetary policy at the Federal Reserve. While there are still risks and uncertainties surrounding the central bank’s next moves, it’s clear that the Fed is preparing for a more accommodative stance in the coming months. As always, it will be important to watch closely as the Fed continues to navigate its policy path forward.