Federal Reserve Governor Christopher Waller, speaking during an event in New York on October 16, 2025, has expressed support for another interest rate cut at the central bank's meeting in December. Waller highlighted his concerns over the labor market and a notable deceleration in hiring.
In an increasingly divided Federal Reserve, Waller's statements align him with those advocating for easing monetary policy to prevent further deterioration in employment conditions. Meanwhile, several regional Fed presidents have recently voiced opposition to additional cuts, arguing that inflation remains a significant threat that could be exacerbated by further monetary easing.
"I am not worried about inflation accelerating or inflation expectations rising significantly," Waller stated in prepared remarks delivered to a gathering of economists in London. "My focus is on the labor market, and after months of weakening, it is unlikely that the September jobs report or upcoming data would alter my view that another cut is necessary."
The Federal Open Market Committee is set to meet again on December 9-10, with market expectations divided after consecutive rate cuts in September and October. Earlier on Monday, Vice Chair Philip Jefferson expressed caution, noting that policymakers should "proceed slowly" in considering further rate cuts. Additionally, Boston Fed President Susan Collins indicated that the bar for more easing remains high.
Waller specified his preference for a quarter-point reduction, contrasting with Governor Stephen Miran, who supported half-point cuts in previous meetings. Recently, Waller reiterated his views while acknowledging recent developments and citing various data points indicating weak labor market demand and consumer pressure, despite the absence of government data during the recent shutdown.
Waller remarked that price data suggests tariffs will not significantly impact long-term inflation, framing further rate cuts as "risk management," a concept also echoed by Fed Chair Jerome Powell. "I worry that restrictive monetary policy is weighing on the economy, especially regarding its impact on lower- and middle-income consumers," Waller commented. "A December rate cut will offer additional insurance against further weakening of the labor market and move policy toward a more neutral stance."
He dismissed claims that the Federal Reserve has been "flying blind" due to the government shutdown, noting, "Despite the government shutdown, we have a wealth of private and some public-sector data that provide an imperfect but perfectly actionable picture of the U.S. economy."