Fed's Waller: Inflation Remains Above Target But Could Cool Down Soon

Fed officials are staying cautiously optimistic about the inflation outlook. According to recent remarks, while current price pressures continue to sit above the Fed's 2% target, policymakers expect the situation to ease over the coming months.

This assessment hints at the Fed's monitoring stance—neither aggressive nor complacent. The trajectory matters more than today's snapshot. If inflation moderates as anticipated, it could reshape expectations around rate paths and liquidity conditions in the broader market.

For crypto investors, Fed inflation expectations translate directly into policy moves. Softer inflation might support a more dovish stance, potentially loosening monetary tightness that's been weighing on risk assets. Conversely, if disinflation stalls, policy could stay restrictive longer than markets hope.

The next few months will be crucial for validating these expectations. Market participants are watching price data closely—any surprises could force another reassessment of Fed trajectory.