Federal Reserve Governor Waller: Supports risk-management rate cut in December

On November 18, Federal Reserve Governor Waller stated that he supports another interest rate cut at the December meeting because he is increasingly concerned about a sharp slowdown in the labor market and employment. Waller said, "I am not concerned about accelerating inflation or a significant rise in inflation expectations. My focus is on the labor market, and after several months of weakness, the September jobs report released later this week or any other data in the coming weeks is unlikely to change my view that another rate cut is necessary." Waller specifically noted that he favors another 25 basis point rate cut.

Waller stated, "I'm concerned that restrictive monetary policy is putting pressure on the economy, especially its impact on low- and middle-income consumers. The December rate cut will provide additional protection against a faster weakening of the labor market and move policy in a more neutral direction." At the same time, he indicated that price data suggests tariffs will not have a long-term impact on inflation. Another rate cut would be a risk management approach. (Jinshi)