## Waller’s Call for Rate Cuts: A Glimpse into the Fed’s Future?
Federal Reserve Governor Christopher Waller, a potential successor to current Fed Chair Jerome Powell, has made some significant statements regarding the future of interest rates. His comments offer a fascinating look into the thinking of a key figure at the central bank. Here’s a breakdown of his recent remarks:
- Immediate Rate Cut Support: Waller advocates for the Federal Reserve to begin cutting interest rates at its next meeting, scheduled for September 16-17.
- Flexibility is Key: He emphasizes the Fed’s ability to adjust the pace of rate cuts based on incoming economic data, avoiding a rigid schedule.
- Neutral Rate Level: Waller believes current interest rates are 1.0 to 1.5 percentage points above their “neutral” level, suggesting room for multiple cuts.
- Multiple Cuts Expected: He anticipates multiple rate cuts over the next three to six months, but the exact timing will depend on economic indicators.
- Labor Market Concerns: Waller highlights the potential for rapid deterioration in the labor market, justifying a proactive approach to rate cuts.
- Tariff Impact: While acknowledging tariffs as a consumer tax that could slow growth, he doesn’t foresee a recession.
- Fed Independence: Waller stresses the importance of the Fed’s independence, regardless of who leads the central bank.
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