Federal Reserve Governor Christopher J. Waller has called on his central bank to lower interest rates as early as July, citing concerns that the labor market may be softening more than expected. The comments from Waller, appointed by President Trump, contradict some of his fellow Fed officials who have expressed caution in cutting rates.
Waller argued that the Fed should not wait for the labor market to weaken before reducing borrowing costs, and suggested that recent data showing difficulty in finding employment among some Americans is a sign that the labor market may be starting to soften. He also downplayed concerns about inflation, stating that trade policy will not lead to sustained price increases.
The Fed’s decision to keep rates unchanged has angered President Trump, who has pushed for steep rate cuts to boost economic growth. However, Waller appeared to rule out supporting immediate reductions, suggesting the Fed should “start slow” and gauge the impact of interest rate changes on inflation.
Waller’s comments have sparked a mixed market response, with investors increasing bets that the Fed will lower rates sooner than October. The S&P 500 started the day slightly lower but saw a rally from overnight losses.
Source: https://www.nytimes.com/2025/06/20/business/fed-interest-rates-christopher-waller.html