Fed’s Waller: Next Month’s CPI, PPI Likely ‘Reasonable’

Waller's forward guidance on CPI and PPI is significant because it preemptively frames the next inflation prints as non-threatening, reducing the likelihood of a hawkish surprise. This matters for rate-sensitive assets, as it reinforces a steady-rate environment. The key question is whether actual data matches his 'reasonable' expectation, and if so, how quickly the Fed shifts from holding to discussing cuts.