According to a report by Jinshi Data, Federal Reserve Governor Waller expressed support for considering an interest rate cut in July, believing that tariffs will not lead to sustained inflation. Waller stated that tariffs are a one-time factor, and the Federal Reserve should not wait until the job market collapses to cut rates.
The current job market is stable, but there are some signs, such as a high unemployment rate among recent graduates. The Federal Reserve has been observing for the past six months, waiting for inflation shocks. Waller believes that the Federal Reserve has room to lower interest rates and then observe changes in inflation.
Waller indicated that the Federal Reserve could meet the conditions for an interest rate cut as early as July. Previously, the market had only a 14% chance of betting on a rate cut in July.