U.S. Federal Reserve Governor Christopher Waller speaks during the C. Peter McColough Series on International Economics at the Council on Foreign Relations in New York, U.S., on Thursday, October 16, 2025.
Michael Nagle | Bloomberg | Getty Images
Federal Reserve Governor Christopher Waller expressed support for another rate cut at the central bank's December meeting on Monday, saying he was increasingly concerned about the job market and the sharp decline in hiring.
In view of an increasingly divided Fed, Waller's comments clearly placed him in the camp of those who want to loosen monetary policy in order to avert further dangers to the labor market situation. Others, including several regional presidents, have spoken out in recent days against further cuts, seeing inflation as a persistent economic threat that could be reignited by further easing measures.
“I'm not worried about inflation accelerating or inflation expectations rising significantly,” Waller said in prepared remarks to a group of economists in London. “My focus is on the labor market and after months of slowdown it is unlikely that the September jobs report later this week or other data in the next few weeks would change my view that further cuts are appropriate.”
The Federal Open Market Committee, which sets interest rates, next meets Dec. 9-10. Markets are divided over which direction the panel will move after successive cuts of quarter percentage points and 25 basis points, respectively, at meetings in September and October.
Earlier on Monday, Vice Chairman Philip Jefferson was noncommittal about the upcoming meeting, saying only that the current economic climate requires policymakers to “move slowly” while further cuts are considered. Boston Fed President Susan Collins said Wednesday that she sees a “high hurdle” to further easing.
Waller indicated that he preferred another quarter-point step. Gov. Stephen Miran, who like Waller is an appointee of President Donald Trump, supported half-point steps in the previous two meetings.
While he has spoken out in favor of cuts several times in recent months, Waller updated his comments to reflect recent developments. In the absence of government data during the recently ended shutdown, the policymaker cited a number of other data points that point to weak demand in the labor market and pressure on consumers.
At the same time, price data suggested tariffs would not have a lasting impact on inflation, he said. Cutting rates again will be an exercise in “risk management,” a term also used by Chairman Jerome Powell.
“I am concerned that tight monetary policy is weighing on the economy, particularly in terms of its impact on low- and middle-income consumers,” Waller said. “A cut in December will provide additional insurance against an acceleration in the weakening of the labor market and move policy in a more neutral direction.”
Waller dismissed claims that the Fed was “flying blind” in its policy because the shutdown has suspended nearly all of the government's official economic data.
“Despite the government shutdown, we have a wealth of private and some public data that provides an incomplete but entirely actionable picture of the U.S. economy,” he said.