Federal Reserve Governor Christopher Waller, seen as a potential successor to Jerome Powell as Fed chair in 2026, said he supports beginning interest rate cuts at the Fed’s September 16–17 meeting. In an interview, Waller argued that the labor market can weaken quickly, making it important to act soon, though he stressed that rate cuts don’t need to follow a fixed schedule and should respond to economic data. He suggested multiple cuts over the next three to six months, as he sees current rates as 1.0 to 1.5 percentage points above “neutral.”
Waller, one of two governors who dissented from the July decision to hold rates steady—the first such dual dissent in over 30 years—acknowledged tariffs will weigh on growth but said he does not expect a recession. He also emphasized the importance of Fed independence regardless of future leadership.
Source : cnbc.com