Fed Governor Waller: The Labor Market is Weakening

Fed Governor Waller's Warning on the Labor Market

Federal Reserve Governor Christopher Waller stated that the job growth in the U.S. labor market in recent months may have painted a negative picture. The labor market is emerging as one of the biggest concerns for the economy right now.

The Importance of Weakness in the Labor Market

In an interview with a private television channel, Waller said, “The labor market is weak, and this is a point that needs to be taken into account from a policy perspective. The seriousness of this situation should be recognized,” he stated.

September Employment Report Delayed

The September employment report, which was scheduled to be released last week, has been postponed due to the government shutdown. Waller explained that employment figures from private sources such as ADP confirmed the weakness in the labor market. “These data may fall short of fully representing the situation, but they all indicate the same general condition,” he conveyed the overall picture of the situation.

Cautious Approach to Interest Rate Cuts

Waller expressed a desire to continue with interest rate cuts but emphasized that policymakers should move cautiously. Despite the weakness in the labor market, signs of growth in the U.S. economy continue to remain strong.

Economic Growth Expectations

According to the Atlanta Fed's real-time model, the gross domestic product (GDP) of the U.S. is expected to grow by %4 annually in the third quarter of 2025. This situation presents a different perspective on the overall outlook of the economy.