Federal Reserve Governor Christopher Waller said 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 an issue that is fading, especially as the labor market shows significant weakness.
Waller said the labor market remains weak with no immediate signs of recovery, noting that September’s jobs numbers were likely revised down and that companies have shown little interest in increasing hiring. He reiterated that inflation, excluding the impact of tariffs, is seen at around 2.4% to 2.5%.
He explained that policy decisions early next year could be more difficult due to the abundance of economic data, emphasizing the need for a “meeting-by-meeting” approach. Waller also expected more careful analysis to be needed to determine whether additional easing is warranted.
Waller also stressed that the Fed’s press conferences should continue to be transparent, while leaving room for improvements in their format. His comments come as the market weighs the likelihood of an additional rate cut in December amid labor market weakness.
