Fed Governor Waller Advocates for Immediate Rate Cut Ahead of September Meeting

Christopher Waller, a influential Federal Reserve governor and potential successor to Jerome Powell, has broken ranks with the Fed's cautious stance by calling for an immediate interest rate cut. In a rare public intervention two weeks before the September policy meeting, Waller told CNBC the U.S. economy requires urgent monetary easing to preempt labor market deterioration.

The hawkish governor's unambiguous stance—"I think we need to start cutting rates at the next meeting"—signals growing divisions within the central bank. While other officials remain focused on lingering inflation risks, Waller emphasized the economy shows clear signs of slowing, particularly in employment metrics.

His proposal for a September cut without committing to a full easing cycle represents a middle path between dovish and hawkish factions. The intervention comes as markets increasingly price in policy pivots from global central banks.