The Federal Reserve Board of Governors supports the Fed's 25 basis point interest rate cut at the September FOMC meeting.
Christopher Waller, a member of the Federal Reserve Board of Governors, publicly stated on August 29, 2025, that he supports a 25 basis point cut in interest rates at the Fed's monetary policy meeting on September 16-17.
He pointed out that unless the non-farm payroll report for August, which is set to be released next week, shows significant economic weakness and inflation remains well controlled, he believes that no larger rate cuts are necessary.
Waller further expects additional interest rate cuts in the next 3 to 6 months, but emphasized that the specific pace will depend on subsequent economic data performance. He explained that the rate cuts may occur in the form of "multiple consecutive cuts or a few followed by a pause."
Waller's reasons for supporting a rate cut mainly include that inflation is near the policy target, signs of weakness in the labor market, and that the current interest rate levels remain in a restrictive range. He emphasized that after excluding temporary factors such as tariffs, the U.S. potential inflation rate is close to the target level of 2%.
At the same time, he pointed out that the hiring pace in the private sector has slowed to "almost a standstill," with wage growth for job switchers also lagging behind that of those who stay, which is contrary to the norm of a healthy labor market.
Waller estimated that the current policy interest rate is 1.25 to 1.50 basis points higher than the neutral rate, and believes that "moderate risk management means the Fed should lower interest rates now," rather than waiting for further deterioration in the labor market.
It is worth noting that Waller was appointed by President Trump and is seen as a strong candidate for the next chair of the Fed. His remarks came after Trump fired another board member, Lisa Cook, which has drawn significant market attention. Waller had also opposed keeping interest rates unchanged at the July meeting, advocating for a 25 basis point cut.
According to the latest data from the U.S. Department of Labor, the number of initial unemployment claims for the week ending August 23 was 229,000, slightly lower than the market expectation of 230,000.
According to the latest data from CME's "FedWatch" tool, the current probability of the Fed lowering interest rates by 25 basis points in September is 85.2%, while the probability of maintaining the current rate is 14.8%.
In summary, the market is currently closely watching the non-farm payroll report for August, which is set to be released next week. This data could become a key basis for the Fed's decision in September.
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The Federal Reserve Board of Governors supports the Fed's 25 basis point interest rate cut at the September FOMC meeting.
Christopher Waller, a member of the Federal Reserve Board of Governors, publicly stated on August 29, 2025, that he supports a 25 basis point cut in interest rates at the Fed's monetary policy meeting on September 16-17.
He pointed out that unless the non-farm payroll report for August, which is set to be released next week, shows significant economic weakness and inflation remains well controlled, he believes that no larger rate cuts are necessary.
Waller further expects additional interest rate cuts in the next 3 to 6 months, but emphasized that the specific pace will depend on subsequent economic data performance. He explained that the rate cuts may occur in the form of "multiple consecutive cuts or a few followed by a pause."
Waller's reasons for supporting a rate cut mainly include that inflation is near the policy target, signs of weakness in the labor market, and that the current interest rate levels remain in a restrictive range. He emphasized that after excluding temporary factors such as tariffs, the U.S. potential inflation rate is close to the target level of 2%.
At the same time, he pointed out that the hiring pace in the private sector has slowed to "almost a standstill," with wage growth for job switchers also lagging behind that of those who stay, which is contrary to the norm of a healthy labor market.
Waller estimated that the current policy interest rate is 1.25 to 1.50 basis points higher than the neutral rate, and believes that "moderate risk management means the Fed should lower interest rates now," rather than waiting for further deterioration in the labor market.
It is worth noting that Waller was appointed by President Trump and is seen as a strong candidate for the next chair of the Fed. His remarks came after Trump fired another board member, Lisa Cook, which has drawn significant market attention. Waller had also opposed keeping interest rates unchanged at the July meeting, advocating for a 25 basis point cut.
According to the latest data from the U.S. Department of Labor, the number of initial unemployment claims for the week ending August 23 was 229,000, slightly lower than the market expectation of 230,000.
According to the latest data from CME's "FedWatch" tool, the current probability of the Fed lowering interest rates by 25 basis points in September is 85.2%, while the probability of maintaining the current rate is 14.8%.
In summary, the market is currently closely watching the non-farm payroll report for August, which is set to be released next week. This data could become a key basis for the Fed's decision in September.
#美联储降息 # Waller's speech #September interest rate meeting