Fed Governor Waller Calls for December Interest Rate Cut

Fed Governor Waller's Emphasis on Interest Rate Cut

Federal Reserve Governor Christopher Waller expressed his desire for an interest rate cut in the upcoming December meeting. Waller noted that after receiving many new economic data in January, the Fed could adopt a more cautious approach.

Attention to the Labor Market

In a statement made on Fox Business Network, Waller said, "The biggest concern regarding our dual mandate is the labor market. That’s why I advocate for an interest rate cut at the next meeting. In January, however, we can conduct a more comprehensive evaluation on a meeting basis," he stated.

Investor Expectations

According to futures contracts, investors assess the likelihood of an interest rate cut at the Fed’s policy meeting on December 9-10 as approximately 70%. This creates a significant expectation in the market.

Divisions Among Fed Officials

According to the minutes from the latest meeting, Fed officials are experiencing serious divisions on whether another cut is necessary following the cuts made in September and October.

Powell's Candidacy Issue

On the other hand, Waller is considered a potential candidate to replace Jerome Powell as Fed chairman by the Trump administration next year.