Fed Officials Signal Looming Interest Rate Cuts Amid Inflation Easing

Top U.S. Federal Reserve officials on Wednesday signaled that interest rate cuts are getting closer, citing improved inflation trends and a more balanced labor market. Their remarks set the stage for a potential rate reduction at the central bank's meeting in September.

Fed Governor Christopher Waller and New York Fed President John Williams both highlighted the nearing possibility of looser monetary policy. Waller noted the first monthly drop in the Consumer Price Index in four years, describing it as 'very good news.'

Williams, also vice chair of the rate-setting Federal Open Market Committee, emphasized the importance of more data to confirm the trend. The central bank is expected to keep its benchmark rate unchanged in the near term, but markets anticipate a cut by September.

(With inputs from agencies.)