♦️ Despite the increasing division within the U.S. Federal Reserve, Board Member Christopher Waller made statements that could bring interest rate cuts back into focus, stating that the U.S. central bank "is in a position to start lowering rates, possibly as early as July."
♦️ Waller's comments came in an interview with CNBC on Friday morning, following the Fed's decision this week to keep interest rates unchanged for the fourth consecutive meeting, as they have remained in a range between 4.25% and 4.50% since the beginning of 2025.
♦️ Waller justified the possibility of a cut by saying he sees no need to wait any longer, adding, "We can start with a gradual reduction, and if a major shock related to developments in the Middle East occurs, we can pause temporarily."
♦️ Waller's statements do not come in isolation from the broader political and economic context; U.S. President Donald Trump has recently intensified his pressure on the Fed, demanding interest rate cuts, arguing that this would help reduce the cost of servicing public debt.
