08:18 AM EST, 01/08/2025 (MT Newswires) -- The Federal Open Market Committee will be able to further lower rates in 2025 if the economy evolves as expected, Federal Reserve Governor Christopher Waller said Wednesday at the Organization for Economic Cooperation and Development.

"If the outlook evolves as I have described here, I will support continuing to cut our policy rate in 2025," Waller said. "The pace of those cuts will depend on how much progress we make on inflation, while keeping the labor market from weakening."

Waller noted there exists a wide disparity of opinions on how much easing will be needed in 2025, adding that "the extent of further easing will depend on what the data tell us about progress toward 2 percent inflation, but my bottom-line message is that I believe more cuts will be appropriate."

Noting President-elect Donald Trump's plan to implement tariffs have some concerned inflation could reignite, Waller suggested the impact may be smaller than expected.

"Projections of the economic impact of these possible policy changes vary widely," Waller said. "If, as I expect, tariffs do not have a significant or persistent effect on inflation, they are unlikely to affect my view of appropriate monetary policy."