Fed Governor Christopher Waller believes that weakness in the jobs market supports the rationale for interest rate cuts, estimating that job growth will be revised down to around zero.
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“Standard central bank wisdom is you look through one-off price effects, like a tariff would be if it has inflation effects,” said Waller on CNBC’s “Squawk Box” on Monday. “Then, the labor market’s telling me we should continue cutting rates.”
Fed’s Waller Backs Lower Rates, Gains in Chair Race
The Fed has a dual mandate to maximize employment while keeping inflation under control. Waller notes that the risk of inflation has been contained, so the central bank must focus on lifting the labor market with lower rates.
President Trump is set to interview Waller later today as a candidate to replace Fed Chair Jerome Powell, according to the Wall Street Journal. Waller’s odds of being selected by Trump have risen by 14% to 21% during the past 24 hours on the prediction platform Polymarket.
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