Fed official signals December rate cut amid labor market concerns

Federal Reserve Governor Christopher Waller voiced support for one more interest rate cut at the central bank’s next meeting in December

Federal Reserve Governor Christopher Waller on Monday voiced support for one more interest rate cut at the central bank’s December meeting, citing growing concern over the labor market and a sharp slowdown in hiring.

Speaking to a group of economists in London, Waller said: “I am not worried about inflation accelerating or inflation expectations rising significantly. My focus is on the labor market, and after months of weakening, it is unlikely that the September jobs report later this week or any other data in the next few weeks would change my view that another cut is in order."

He indicated a preference for a quarter-point rate reduction. Although he has repeatedly supported cuts in recent months, Waller adjusted his comments to reflect recent economic developments.

Waller added that price data suggest tariffs are unlikely to have a lasting impact on inflation and that another rate cut would serve as part of a risk management approach.

His remarks come amid increasing division among Fed officials, with other members, including regional bank presidents, opposing further cuts in recent days despite reductions in September and October, citing persistent inflation risks.

The Federal Open Market Committee, which sets interest rates, is scheduled to meet on Dec. 9-10. Investor expectations reflect a split over the likely policy decision.