JPMorgan: Expects Waller to Accommodate Trump with Rate Cuts in the Short Term, Return to Hawkish Stance After the Midterm Elections

BlockBeats News, February 2, JPMorgan Chief U.S. Economist Michael Feroli predicted in a report that Waller may accommodate rate cuts in the short term, at least for this year. However, he also warned: "Over time, especially after the midterm elections and as the government enters a lame-duck period, his stance is likely to shift, and he may even return to his more hawkish nature."

It is worth noting that JPMorgan has not adjusted its rate cut expectations due to Waller's nomination. Feroli stated that even if Waller takes office, the bank still expects the Federal Reserve to "hold steady" for the remainder of this year.

It is also noteworthy that a former Federal Reserve official who once worked with Waller believes that the "real Waller" will eventually emerge. This anonymous official told CNN: "Waller has coveted this position for too long. He is a smooth operator, extremely adept at climbing the ranks. But this position has been his lifelong pursuit. If he becomes a mere yes-man just to get the job, it would be a Pyrrhic victory. The longer he stays in this position, the more likely he is to show his independence."