Federal Reserve Governor Christopher Waller said recent economic data shows the Fed should ease more cautiously after last month's jumbo rate cut.

By Ann Saphir Palo Alto, California (Reuters) -Citing a recent uptick in inflation and data showing the U.S. economy and labor market are stronger than previously thought, Federal Reserve Governor Christopher Waller on Monday called for "more caution" on interest-rate cuts ahead.

A key voter on the Federal Reserve said the surprising strength of the economy suggests the central bank should “proceed with more caution” in cutting U.S. interest rates to make sure inflation doesn’t reignite.

In mid-September, the Federal Reserve lowered its benchmark interest rate by half-a-percentage-point. And in the coming months, the Fed is likely to continue making rate cuts in response to cooling inflation.

Kashkari said that the current stance of monetary policy remains restrictive of growth, although by how much is unclear.

Recent data suggest that the Federal Reserve should proceed at a more cautious pace after the central bank's half-point cut in September, Fed Governor Christopher Waller said Monday. But two alternate scenarios could change that logic,

JPMorgan Chase CEO Jamie Dimon has downplayed the Fed's recent interest rate cut. In reality, rate cuts have the potential to change a lot of people's financial situations. Rate cuts are expected to continue, and they're likely to make borrowing less expensive but limit the amount of interest savers can earn.

But the Fed's recent rate cut, and any future rate cuts that come down the pike in the next year, should not influence your retirement savings strategy. Simply put, if you're still many years away from retirement, you should be putting the bulk of your savings into the stock market.

The Federal Reserve's jumbo-sized rate cut in September came too late to have much of an effect on banks' third-quarter results. But lower rates are expected to have mixed results on their profits from lending.

Contingency planning for possibility of rising inflation and interest rates will help businesses respond to changes fast and calmly—better than dithering or panicking.

Citing recent data showing an uptick in inflation and a U.S. economy and labor market that are stronger than previously thought, Federal Reserve Governor Christopher Waller on Monday called for "more caution" on interest-rate cuts ahead.