Fed’s Waller calls for interest cut by July-end

Federal Reserve headquarters

Federal Reserve Governor Christopher Waller said he supports a 25-basis-point interest rate cut at the upcoming monetary policy meeting scheduled for July 29–30, citing escalating economic risks and weakening labor market momentum.

Speaking at a New York University event on Friday morning, Waller said that data still points to ongoing economic growth, but at a slower pace - reinforcing the need for monetary easing.

Moreover, inflationary pressures stemming from the tariffs imposed by President Donald Trump’s administration are likely to be temporary. The Fed can look past them and instead focus on broader economic trends, Waller added.

Waller pointed out that the current interest rate range of 4.25% - 4.5% remains above the estimated neutral level of around 3%, and said that if growth continues to slow and inflationary pressures remain contained, he would support further gradual rate cuts in future meetings.

He also warned that delaying a rate cut to September or later could hinder the Fed’s ability to respond swiftly to a slowdown. An early move in July gives policymakers more room to assess developments going forward.