Fed Governor Christopher Waller Advocates for December Rate Cut Amid Labor Market Concerns

Federal Reserve Governor Christopher Waller has publicly called for a rate cut at the December meeting, citing persistent weakness in the labor market as a primary concern. "My focus is squarely on our dual mandate, and right now, the labor data demands action," Waller stated during a recent address. Market participants have priced in a 70% probability of a December cut, though consensus remains elusive as Fed officials continue to debate the path forward.

The October and November jobs reports, due December 16, along with November CPI data on December 18, could dramatically alter the calculus. "Should these numbers show unexpected strength in inflation or employment, we'd need to reassess immediately," Waller cautioned. This uncertainty has prompted his suggestion that the Fed adopt a "meeting-by-meeting" approach starting in January when delayed economic reports flood in.

Futures markets have been volatile as traders digest conflicting signals from Fed speakers. Waller's remarks represent the most explicit push yet for preemptive easing, setting the stage for a potentially pivotal December decision that could impact risk assets across financial markets.