Federal Reserve Governor Christopher Waller has signaled support for a potential Rate Cut in December, even as Chair Jerome Powell insists that monetary easing might have already gone far enough.
“The biggest concern we have right now is the labor market,”
Waller said.
“We know inflation is coming down, and that’s why I continue to support a policy rate cut in December, because all the data are pointing that way.”
Waller’s remarks suggest growing confidence that inflation is cooling without major risks of reigniting price pressures. Powell, however, remains cautious, warning that new tariffs and rising costs could still threaten price stability.
Recent CPI data adds weight to Waller’s case, annual inflation eased to 3% in September, slightly below forecasts. Still, Powell emphasized that while progress is being made, it’s too soon to assume the Fed’s job is done.
Other officials, including Dallas Fed’s Lorie Logan and Cleveland Fed’s Beth Hammack, echoed Powell’s view, saying the central bank must tread carefully before approving another Rate Cut.
Markets remain divided: while some traders still expect a December Rate Cut, Powell’s latest comments have cooled earlier optimism.
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