Fed Governor Christopher Waller signaled clear support for a December rate cut, saying most private-sector and anecdotal data since the last FOMC meeting show little improvement in economic conditions. He noted that the labor market “is soft” and “continuing to weaken,” with inflation expected to ease, creating an environment where another cut next month is appropriate.
Waller said the January meeting presents more uncertainty, as the Fed will receive a “flood of data” that had been delayed by the government shutdown. If those releases align with recent trends—softening labor conditions and moderating inflation—then a case for another cut could be made. “But if it suddenly shows a rebound in inflation or jobs or the economy’s taking off, then it might give concern,”” he added.
Beyond policy, Waller confirmed he met recently with Treasury Secretary Scott Bessent to discuss his potential nomination as the next Fed Chair, as the Trump administration moves to select a successor to Jerome Powell. Waller said the meeting went “great,” and argued that the administration is seeking someone with “merit, experience, and knows what they are doing,” adding, “I think I fit that.”
Powell’s term ends in May, leaving a narrow window for the White House to finalize its choice.
