financetom
Economy
financetom
/
Economy
/
Fed's Waller repeats call for rate cut in September, pace depends on data
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Fed's Waller repeats call for rate cut in September, pace depends on data
Sep 3, 2025 6:39 AM

(Reuters) -Federal Reserve Governor Christopher Waller on Wednesday repeated his call for an interest-rate cut in September given the weakening in the labor market, and said that how fast the central bank cuts after that will depend on what happens next in the economy.

"I think we need to start cutting rates at the next meeting, and then we don't have to go in a locked sequence of steps," Waller said in an interview on CNBC. "We can kind of see where things are going, because people are still worried about tariff inflation ... I would say over the next three to six months, we could see multiple cuts coming in."

Waller, one of two Fed governors who dissented in favor of a rate-cut in July, said he believes tariffs may push up inflation over the next several months, but said he expects that to be temporary and for inflation to resume falling back toward the Fed's 2% goal in six or seven months.

Given the drop in labor demand, he said, the Fed should start bringing the policy rate, now in the 4.25%-4.50% range, down toward an estimated neutral rate of 3% -- with the pace of adjustments to depend on the economic data.

Waller said he has spoken with US Treasury Secretary Scott Bessent in the past but has not had an interview for the job of Fed chair and does not yet have one scheduled. Bessent is expected to have a round of interviews for the job starting Friday, the Wall Street Journal reported. 

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US consumer confidence ebbs slightly in June
US consumer confidence ebbs slightly in June
Jun 25, 2024
WASHINGTON (Reuters) - U.S. consumer confidence eased slightly in June amid worries about the economic outlook, but households were upbeat about the labor market and their inflation expectations over the next year improved a bit, a survey showed on Tuesday. The Conference Board said that its consumer confidence index eased to 100.4 this month from a downwardly revised 101.3 in...
Fed's Cook: 'At some point' it will be time to cut interest rates
Fed's Cook: 'At some point' it will be time to cut interest rates
Jun 25, 2024
NEW YORK (Reuters) - Federal Reserve Governor Lisa Cook said on Tuesday the U.S. central bank is on track for a rate cut if the economy's performance meets her expectations, but she declined to say when the Fed will be able to act. Our current policy is well positioned to respond as needed to any changes in the economic outlook,...
Election uncertainty may impact U.S. auto industry, report says
Election uncertainty may impact U.S. auto industry, report says
Jun 25, 2024
(Reuters) - Uncertainty looms over the U.S. auto industry, fueled by expectations that the presidential elections in November will reshape the economy, affect interest rates or influence inflation levels, a report from Cox Automotive showed on Tuesday. Cox forecast that new-vehicles sales volume in the first half of 2024 will rise by 2.9% year-over-year and held its full-year forecast steady...
May Unemployment Rate Declines Most in Arizona
May Unemployment Rate Declines Most in Arizona
Jun 25, 2024
10:28 AM EDT, 06/25/2024 (MT Newswires) -- State-level data released by the Bureau of Labor Statistics Tuesday showed the unemployment rate fell in four states in May, rose in three and held steady elsewhere. The largest unemployment rate decline was in Arizona, where it fell by 0.2 percentage point. North Dakota and South Dakota had the lowest rate at 2%...
Copyright 2023-2026 - www.financetom.com All Rights Reserved