Federal Reserve's Waller Advocates for December Rate Cut Amid Labor Market Concerns

According to BlockBeats, Federal Reserve Governor Christopher Waller has expressed support for another interest rate cut in December, citing growing concerns over a significant slowdown in the labor market and employment. Waller emphasized that he is not worried about accelerating inflation or a notable rise in inflation expectations. His primary focus remains on the labor market, which has shown signs of weakness over recent months. He stated that the upcoming September employment report or any other data in the coming weeks is unlikely to change his view that a rate cut is necessary. Waller specifically mentioned his preference for a 25 basis point reduction, highlighting concerns that restrictive monetary policy is exerting pressure on the economy, particularly affecting middle- and low-income consumers. He believes that a December rate cut would provide additional protection against a further weakening of the labor market and help steer policy towards a more neutral stance. Additionally, Waller noted that price data indicates tariffs are unlikely to have a long-term impact on inflation. He described the proposed rate cut as a risk management strategy.