Fed Governor Christopher Waller signaled openness to a rate cut as early as July, citing minimal inflation risks from US tariffs and mounting concerns over the labor market.
In an interview with CNBC, Waller said, “I think we’re in the position that we could do this and as early as July,” while acknowledging it’s uncertain whether the broader committee will align with that view.
Waller emphasized the risks of delaying action, warning against waiting for a clear downturn in employment. “If you’re starting to worry about the downside risk labor market move now don’t wait,” he argued.
Regarding tariffs, Waller dismissed concerns that they would create sustained inflationary pressure, reiterating that the price effects should be limited and one-off.
“Even if the tariffs come in later, the impacts are still the same,” he said, calling for the Fed to “start thinking about cutting the policy rate at the next meeting”, after pausing the easing cycle for six months.
