Federal Reserve Governor Christopher Waller stated on Monday that he would support a rate cut at the December meeting, given that economic data has not changed much since the Fed’s last decision. He described inflation as a diminishing issue, especially as the labor market shows significant weakness.
Waller noted that the labor market remains weak with no signs of immediate recovery, mentioning that the September employment figures are likely to be revised downward and companies are not showing interest in increasing hiring. He reiterated that inflation, excluding the effects of tariffs, is seen to be around 2.4% to 2.5%.
He explained that policy decisions early next year may be more difficult due to the spillover of economic data, emphasizing the need for a “meeting-by-meeting” approach. Waller also expects a more cautious analysis will be required to determine whether additional easing is appropriate or not.
Waller also stressed that Fed press conferences should continue on the basis of transparency, while allowing room for improvements in their format. His views come as the market assesses the likelihood of an additional rate cut in December amid labor market weakness.
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