Fed Governor Waller: Supports risk management-style rate cuts in December.

PANews, November 18 news, The Federal Reserve Board of Governors member Waller stated that he supports another interest rate cut at the December meeting, as he is increasingly concerned about the sharp slowdown in the labor market and employment. Waller said: “I am not worried about accelerating inflation or significantly rising inflation expectations; my focus is on the labor market. After several months of weakness, the September employment report to be released later this week or any other data in the coming weeks are unlikely to change my view that another rate cut is necessary.” Waller specifically noted that he favors another cut of 25 basis points. Waller stated: “I am concerned that restrictive monetary policy is putting pressure on the economy, particularly its impact on middle- and low-income consumers. A rate cut in December would provide additional assurance against a sharper weakening of the labor market and steer policy towards a more neutral direction.” Meanwhile, he noted that price data indicate that tariffs will not have a long-term impact on inflation. Another rate cut would be a risk management approach.