Fed's Waller: Let's Cut Rates Already, Shall We?

In an interview with CNBC on Wednesday, Federal Reserve Governor Christopher Waller didn't mince words about what he thinks should happen at the next policy meeting: cut those rates!

His Unfiltered Thoughts

"Don't need to go in lock-sequence of rate cuts," Waller said, sounding slightly exasperated with the traditional Fed playbook.

He rambled on about multiple cuts potentially happening, throwing out a casual "whether it's every meeting or every other will need to see what data says." Classic central banker talk - committing without really committing.

"We know we'll have a blip of inflation but it won't be permanent," he asserted with questionable confidence. "Six months out will be closer to 2%." Sure, Chris. I've heard that one before.

The most entertaining part? "We can always adjust rate-cut pace," he added, basically admitting they'll just wing it if they get it wrong.

When pressed about Fed independence - a hot topic given recent political tensions - Waller defensively stated, "Fed's independence is critical, believe we have independent Fed." But then oddly volunteered, "Have not had interview for fed chair job." Nobody asked, buddy.

His economic outlook? The always-safe "Don't see recession, but slower growth." How original.

Market Shrugged It Off

These comments barely moved the needle on markets. The US Dollar Index sat there unchanged at 98.30, clearly unimpressed with Waller's statements.

Traders seem to have heard it all before - another Fed official talking about cuts without saying anything concrete. Meanwhile, Bitcoin continues hovering around $124K and gold keeps testing new highs above $3,900 as investors hedge against uncertainty.

With the ongoing government shutdown and Takaichi's recent win as Japan's first female Prime Minister potentially delaying Bank of Japan rate hikes, Waller's comments just add to the cacophony of central bank voices that seem increasingly reactive rather than strategic.

Perhaps markets would respond more if Fed officials actually committed to a clear path instead of hedging their statements with endless caveats and escape clauses.