## Waller Wants Rate Cuts: Is the Fed Ready to Shift Gears?
The Federal Reserve is at a pivotal moment, and Governor Christopher Waller, a potential successor to current Chair Jerome Powell, is making his stance clear. In a recent interview, Waller advocated for immediate rate cuts, signaling a potential shift in the central bank’s monetary policy. Here’s a breakdown of his key points:
- Immediate Rate Cuts: Waller believes the Fed should begin cutting interest rates at its next meeting, scheduled for September 16-17.
- Flexibility is Key: He emphasized the ability to adjust the pace of rate cuts based on incoming economic data, avoiding a rigid schedule.
- Multiple Cuts Expected: Waller anticipates “multiple cuts” over the next three to six months, suggesting a more dovish approach. He estimates that current rates are 1.0 to 1.5 percentage points above their “neutral” level.
- Labor Market Concerns: He cited the potential for a rapid deterioration in the labor market as a key reason for acting sooner rather than later.
- Tariff Impact: While acknowledging the negative impact of tariffs on growth, Waller doesn’t foresee a recession.
- Fed Independence: Waller reiterated the importance of the Fed’s independence, regardless of who leads the central bank.
- Potential Successor: Waller is considered a potential successor to current Fed Chair Jerome Powell.
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