Fed’s Waller backs July cut, rejects political motive in push for easing

Fed Governor Christopher Waller made a rare call for immediate easing, stating that inflation has fallen far enough to support a rate cut as early as this month. Speaking in Dallas overnight, Waller said the policy rate is “too tight” given current inflation dynamics and that July presents a viable window for action. “I just made the argument… we could consider cutting,” he said, while acknowledging he’s “kind of in the minority on this”.

Waller dismissed concerns that recent tariffs should delay easing, noting that their impact has so far been narrow and contained. He emphasized that the Fed’s job is to respond to broad inflation trends, not isolated price spikes. “If inflation is coming down, you don’t need to be as restrictive anymore,” he said.

He also emphasized “it’s not political”, saying his position was grounded in economics. With inflation easing, a steady labor market, and the Fed’s rate still well above its long-run neutral level, Waller said a July move would be justified based on data alone.