Fed Governor Waller expresses concerns about the labor market, pushing for interest rate cuts this month.

He notes that job growth in the private sector has slowed and wage increases have also decreased, but he has not asserted that he will oppose his colleagues' policies in the upcoming meeting.

MAIN CONTENT

  • Concerns about the private sector employment situation increase pressure for Fed to lower interest rates.

  • The June report shows that job and wage growth has slowed despite a decrease in the unemployment rate.

  • Waller is willing to accept the position of Fed Chair if invited, but there has been no official contact yet.

Why did Fed Governor Waller propose cutting interest rates this month?

Waller stated that the private sector employment situation is not as positive as expected, prompting him to suggest lowering interest rates to support the economy. This is the focus explaining his move based on recent job and wage data.

The June jobs report published at the beginning of July shows that although the unemployment rate has decreased, the pace of job growth in the private sector has significantly slowed, while wage increases are no longer as strong as before. This reflects potential pressure on the labor market and purchasing power of workers, suggesting that more flexible monetary policies are needed in the near future.

The private sector employment situation is not as expected, which could significantly affect the growth plans of the U.S. economy.

Christopher Waller, Fed Governor, July 2024

Is Waller certain to support interest rate cuts in the July meeting?

Despite expressing concerns, Waller did not assert he would oppose if colleagues decided not to adjust interest rates in the meeting at the end of July in Washington.

This reflects Waller's practical considerations of multifaceted economic factors and other assessments from Fed members. He shows flexibility and respect for collective decisions while closely monitoring economic developments before making an official decision.

What is Waller's attitude toward the possibility of holding the position of Fed Chair?

He expresses willingness to take on the role of Fed Chair if invited by the President, but so far, there has been no official contact from the White House.

This statement reflects Waller's ambition and confidence in leading the most important monetary policy in the United States, as well as his ability to continue playing a key role in the direction of the national macroeconomic policy.

I am willing to serve as Fed Chair if invited, but currently, there has been no contact.

Christopher Waller, Fed Governor, July 2024

Frequently Asked Questions

Why is Waller concerned about the private employment sector?

Data shows rapid declines in job and wage growth in the private sector, signaling risks for the U.S. economy.

How does cutting interest rates affect the money market?

Helps reduce borrowing costs, stimulates investment and consumption but also increases the risk of inflation.

Can Waller become Fed Chair?

He is ready to take on the task if chosen by the President and approved by the Senate.

Unemployment is down but job growth is slow, why?

Unemployment has decreased due to other factors such as fewer job seekers, but the number of new jobs has not increased significantly.

When will the Fed decide on interest rate policy?

The policy meeting is scheduled to take place from July 29-30, 2024, in Washington D.C.

Source: https://tintucbitcoin.com/fed-waller-canh-bao-ky-vong-lai-suat/

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