Fed Governor Waller Advocates Cautious Rate Cuts Amid Mixed Economic Signals
Federal Reserve Governor Christopher Waller has called for interest rate reductions, albeit with a measured approach, as the U.S. economy grapples with conflicting indicators. While GDP growth remains robust, Waller highlighted concerns over labor market instability during a CNBC interview. "Either employment rebounds to match economic output, or growth will inevitably slow," he stated, emphasizing the policy implications of this divergence.
The Fed official endorsed the consensus projection of two additional rate cuts by end-2025, warning that more aggressive easing could destabilize markets. Waller's remarks carry added weight as he is reportedly among the top candidates to succeed Chair Jerome Powell. Interest rate futures currently price in a 92.2% probability of two cuts this year, according to CME Group data.
