With "inflation back to trend," Federal Reserve Governor Christopher Waller said Thursday he sees the possibility of three or four interest-rate reductions in the first half of 2025, provided the "data cooperates.

The yield on the 10-year Treasury has recently soared toward its highest level since 2023, injecting nervousness into the U.S. stock market that's knocked indexes from their records.

Inflation is likely to continue to ease and possibly allow the Federal Reserve to cut rates sooner and faster than expected, Fed governor Chris Waller said Thursday in comments that pushed against recent market moves that anticipated a shallower Fed rate path.

Consumer Price Index showed an acceleration to 2.9%, the highest rate since July. With such high inflation, the Fed is unlikely to cut rates in January.

Annual inflation ticked up for a third straight month in December as food, energy costs rose, CPI report showed. But underlying price measure eased.