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Fed's Waller: "Crazy" to talk about rate cuts right now

BY Reuters | ECONOMIC | 10:58 AM EDT

By Howard Schneider

May 22 (Reuters) - U.S. Federal Reserve Governor Christopher Waller said it would be "crazy" for the Fed to contemplate rate cuts in the near future, with inflation stuck above target and the job market seeming more stable than it did earlier in the year.

"It's just kind of crazy to say you could start talking about rate cuts in the near future," Waller said. "You just can't look at this data and say yeah we could cut rates by September or something...You can't be serious as a central banker and talk like that." (Reporting by Howard Schneider; Editing by Chizu Nomiyama)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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