A top Federal Reserve official, Christopher Waller, has expressed support for cutting interest rates at the central bank’s next meeting, citing signs of an economy in decline. Waller stated that consumer spending and job gains are slowing, posing a threat to the Fed’s goal of maximum employment.
Waller also downplayed the impact of President Trump’s tariffs on inflation, saying they would only temporarily boost prices and urging policymakers to focus on underlying inflation. He noted that inflation is nearing the Fed’s 2% objective this year.
The proposal contradicts Chair Jerome Powell’s stance on delaying rate cuts, which has drawn criticism from the White House. Despite this, Waller remains a potential replacement for Powell when his term expires in May 2026. Other officials, including Michelle Bowman and Kevin Warsh, have also expressed support for cutting rates soon.
According to Fed minutes, only a couple of committee members supported a rate cut in July. The central bank’s interest-rate setting committee meets on June 17-18, and the outcome will be closely watched by market analysts.
Source: https://apnews.com/article/federal-reserve-powell-trump-14dc02f2a212067f4343037504cf1d19