Federal Reserve (Fed) Governor Christopher Waller said on Friday that he is open-minded on the size and the pace of interest rate cuts, adding that they will depend on data, per Reuters.

Key takeaways

"Maintaining the economy's forward momentum means time has come to begin reducing policy rate at upcoming meeting."

"Data in past three days indicates labor market is softening but not deteriorating; this judgment important to upcoming policy decision."

"It is likely a series of reductions in policy rate will be appropriate."

"Determining appropriate pace of cuts will be challenging."

"Will be an advocate for front-loading rate cuts if that is appropriate."

"If future data shows significant deterioration in labor market, Fed can act quickly and forcefully."

"Would also cut at consecutive meetings if data calls for it as I would be for larger cuts if needed."

"I do not believe economy is in a recession or necessarily headed for one soon."

"I stand ready to act promptly to support the economy as needed."

"Sufficient room to cut policy rate and still remain somewhat restrictive to ensure inflation returns to 2%."

"Current batch of data no longer requires patience, it requires action."

"August jobs report and other recent data reinforces view there has been continued moderation in the labor market."

"In light of considerable and ongoing progress toward FOMC's 2% inflation goal, balance of risks has shifted toward employment."