Fed’s Waller says weak labour market justifies another rate cut in December – recap

Federal Reserve Governor Christopher Waller said he firmly supports another quarter-point rate cut at the December 9–10 meeting, arguing the U.S. labour market has weakened enough to justify further easing. Waller—seen as a leading candidate to become the next Fed chair—said surveys, employer contacts and private-sector indicators all point to a job market “near stall speed,” and he doubts any delayed official data will change that view.

Waller stressed he is less concerned about inflation, noting that slowing growth, softer household spending and modest wage pressures have kept price gains contained. With the September jobs report and several other key indicators delayed by the 43-day government shutdown, he said private data offers a sufficiently clear picture: lower- and middle-income households are under strain, and restrictive policy may now be weighing on the broader economy.

While Waller backs another rate cut, several Fed officials have recently pushed back against further easing, citing inflation still running around 3%. Waller said that, given the evidence, no upcoming data is likely to shift his stance.

—

Earlier: