San Francisco Fed President Mary Daly signaled clear support for a rate cut at next month’s FOMC meeting, telling the Wall Street Journal that the Fed now faces greater risk from a sudden deterioration in the labor market than from another inflation flare-up.

She said the job market is “vulnerable enough now” that the risk of a sharp, “nonlinear” weakening is rising, leaving policymakers with less room to react if they wait too long. Daly emphasized that she no longer feels confident the Fed can “get ahead of” labor-market weakening, arguing that the damage from a sudden drop in hiring would be harder to manage than moderating inflation.

On inflation, Daly said the chance of a meaningful reacceleration appears limited, pointing to softer-than-expected tariff-related cost increases this year.

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.

Boston Fed President Susan Collins signaled a clear preference for caution ahead of the December 9–10 FOMC meeting, saying she sees “reasons to be hesitant” about lowering borrowing costs again. After the 50bps of easing delivered in September and October, Collins argued on Saturday that policy is now “mildly restrictive” and appropriately calibrated to current conditions.

Collins stressed that the Fed faces a difficult balance: inflation remains above target while the job market shows visible signs of softening. She said risks exist “on both sides of the mandate,” and emphasized that more persistent weakness in employment could change her stance. “If I saw more evidence of softening and weakness, I would take that seriously,” she noted.

She also highlighted the unusually wide set of views emerging inside the Committee. “We’re in a complex period” for setting policy, Collins said, adding that a range of perspectives is healthy at a time when the economic outlook is highly uncertain.

New York Fed President John Williams maintained a cautiously dovish tone today, saying he continues to view U.S. monetary policy as “modestly restrictive.” With that in mind, he sees room for “a further adjustment in the near term” to bring the federal funds rate closer to neutral.

Williams reiterated his confidence that inflation will moderate as tariff effects filter through the economy without generating lasting price pressures. At the same time, he emphasized that the labor market appears to be cooling in a controlled manner.

The unemployment rate reached 4.4% in September, a level he noted was comparable to pre-pandemic norms—when the job market was healthy but “not overheated.”