U.S. Fed directors express disagreement over further rate cuts

Major members of the U.S. Federal Reserve, which takes part in the FOMC, or Federal Open Market Committee, which sets U.S. monetary policy, have expressed conflicting views on further rate cuts.

At an event at the Fed of California Banks, Michelle Borman, a hawkish director who favors monetary tightening, indicated that the Fed's further rate cuts need to stop.

"Inflation slowed markedly last year, but progress in the slowdown has stopped and core inflation is still inconveniently above the 2% target," Borman noted.

On the other hand, Fed director Christopher Waller contrasted at an Organization for Economic Cooperation and Development event in Paris, France, by expressing his view that further rate cuts are appropriate, saying he is optimistic about continuing a slowdown in inflation.

"Inflation will make progress towards the 2% target in the medium term and further rate cuts are appropriate," said Waller, a Fed director who is in the spotlight on Wall Street for his moderate hawkishness among FOMC members.