Federal Reserve Governor Chris Waller said Friday the central bank should consider cutting interest rates at its July meeting, citing steady inflation data and downplaying the inflationary impact of import tariffs.
Speaking on CNBC, Waller argued that any tariff-driven price increases would be temporary and urged preemptive action to protect the labor market. “Why wait until the job market tanks?” he said. “Start the process.”
His remarks follow the Fed’s recent decision to hold rates steady at 4.33%. Waller suggested a gradual reduction strategy, stating, “You’d want to start slow… but start the process.”
President Donald Trump has demanded deeper cuts, urging a drop of at least one percentage point.
Waller’s dovish tone contrasts with Fed Chair Jerome Powell’s more cautious approach. Powell maintains that tariffs will likely raise inflation and supports a wait-and-see policy.
Markets responded positively, with U.S. stock futures rising after Waller’s comments.
