Fed Governor Waller said the Fed could cut interest rates earlier if inflation falls below 2 percent, which is an unlikely scenario, or if the labor market deteriorates. The Fed could pause rate cuts if inflation rises unexpectedly. And said the latest inflation data is "disappointing" and the economy is on solid footing and may not slow as expected; GDP growth is expected to be faster in the second half of 2024. Looking ahead, job growth is expected to slow and the unemployment rate will gradually rise, but it will remain at historically low levels.