Key Takeaways
- Fed Governor Christopher Waller advocates for December interest rate cut
- US labour market weakening cited as primary concern
- October rate cut approved with 10-2 majority, showing divided Fed
- Other Fed officials express caution about further cuts
Federal Reserve Governor Christopher Waller has called for additional interest rate cuts in December, pointing to a deteriorating labour market as his main concern. His comments come just days after the Fed implemented a 25 basis point rate reduction.
Waller emphasized that current economic data supports further monetary easing, stating that inflation is expected to continue declining.
“We know inflation is going to come back down, so this is why I’m still advocating that we cut policy rates in December, because that’s what all the data is telling me to do,” said Waller. “The biggest concern we have right now is the labour market.”
The push for more rate cuts highlights ongoing divisions within the Federal Reserve, with Chairman Jerome Powell acknowledging differing views among policymakers about the appropriate path forward.
Who is Christopher Waller?
Christopher Waller joined the Federal Reserve Board of Governors on December 18, 2025, with his term extending until January 31, 2030. Prior to his current role, he served as executive vice president and director of research at the Federal Reserve Bank of St. Louis since 2009.
Waller holds a BS in Economics from Bemidji State University and earned both his MA and PhD from Washington State University.
Dissent Within the Fed
Other Federal Reserve officials expressed more cautious views about additional rate cuts. Dallas Fed President Lorie Logan opposed the recent reduction and indicated she would need clear evidence of faster disinflation or labour market cooling before supporting further cuts in December.
“I did not see a need to cut rates this week,” Lorie Logan said, reported the news agency. “I’d find it difficult to cut rates again in December unless there is clear evidence that inflation will fall faster than expected or that the labour market will cool more rapidly.”
Cleveland Fed President Beth Hammack described her stance as neutral following the recent policy move.
“Given the move that we just made, I think we’re right around my estimate of neutral: I think we’re barely restrictive if at all,” said Hammack, cited by the news agency.
Both officials, while lacking voting privileges this year, opposed the rate cut implemented earlier this week.
October Rate Cut Details
The Federal Open Market Committee, led by Jerome Powell, reduced the benchmark interest rate by 25 basis points to a range of 3.75% to 4.00% during its October meeting. The decision reflected the central bank’s data-dependent approach to future policy moves.
“In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 per cent,” said the FOMC in its statement.
The vote revealed significant divisions, with ten members supporting the cut, one preferring a 50 basis point reduction, and another advocating for no change. The 10-2 split on October 29, 2025, underscores the challenging policy environment facing the central bank.
