Waller Advocates for Immediate Interest Rate Cuts

Federal Reserve Governor Christopher Waller urges immediate interest rate cuts, starting next month, to achieve a more neutral monetary policy stance. He anticipates additional cuts over six months, contingent on economic data, amid concerns about a weakening labor market and inflationary pressures influenced by tariffs and tariffs policy.

In a significant policy shift, Federal Reserve Governor Christopher Waller has advocated for a reduction in U.S. interest rates starting next month. Speaking at the Economic Club of Miami, Waller identified current labor market dynamics and inflationary trends as significant factors necessitating the cuts.

Waller envisions a 25 basis-point rate cut during the upcoming September 16-17 Federal Open Market Committee meeting. He also indicated openness to further reductions, depending largely on forthcoming labor market data. Despite some economic uncertainties, Waller emphasized the importance of adjusting policy to avoid falling behind.

Waller's views align partially with current Fed sentiments under Chair Jerome Powell, especially concerning labor market risks. The discussion arises amid President Trump's scrutiny of the Fed's decision-making, further fueled by recent board-level changes. Analysts foresee a probable series of careful, data-driven policy adjustments in the upcoming months.

(With inputs from agencies.)