Fed’s Waller Signals December Rate Cut as Job Market Weakens
Federal Reserve Governor Christopher Waller says he supports a rate cut in December, warning that the U.S. labor market is slowing down more than expected. He isn’t worried about rising inflation — instead, he’s focused on weakening hiring and pressure on middle- and low-income workers.
Waller prefers a 25 bps cut, saying current high interest rates are putting too much stress on the economy. He also believes new data coming in the next few weeks is unlikely to change his view.
Trend:
The Fed is shifting from fighting inflation to protecting jobs. Markets may start pricing in a softer policy path if more Fed officials share the same outlook.
Next Moves to Watch:
Whether incoming labor data continues to show weakness
Market reaction to increased chances of a December rate cut
How risk assets — especially stocks and crypto — respond to a more dovish Fed tone
A December cut could give the economy some breathing room and reduce recession fears, but all eyes now turn to upcoming employment numbers.