WASHINGTON (Reuters)

Inflation is likely to continue to ease, possibly allowing the Federal Reserve to cut rates sooner and faster than expected, according to Fed governor Chris Waller.

Waller made these comments on Thursday, indicating that recent market movements anticipated a shallower Fed rate path.

Waller stated, “Inflation is getting close to what our 2% inflation target would be,” during an interview on CNBC. He added, “If we continue getting numbers like this, it is reasonable to think rate cuts could happen in the first half of the year… I am optimistic that this disinflationary trend will continue and we will get back closer to 2% a little quicker than maybe others are thinking.”