The Shiro Copr , JAKARTA — Governor's Council Member Federal Reserve , Christopher Waller, considers that the US central bank should lower Fed Interest Rate this month to support labor market which continues to show weakness.
Waller's statement shows a difference in his stance from most members of the Federal Reserve's Board of Governors, who assess that the U.S. labor market remains strong. He also considers the Federal Reserve's 25 basis point interest rate cut in July 2025 as a reasonable move.
"With inflation approaching its target and the risk of inflation increases being limited, we should not wait until the labor market deteriorates before cutting the benchmark interest rate," Waller said on Thursday (7/17/2025) local time, reported from Bloomberg .
For Fed officials, the Federal Reserve Board meeting will be held on July 29-30, 2025, to determine US monetary policy. The Fed's interest rate decision will be announced by the Fed Chair. Jerome Powell on Wednesday (7/30/2025).
Waller is one of two Fed officials, along with Deputy Chair of Supervision Michelle Bowman, who have shown a more relaxed view on interest rates this month.
Previously, Waller also stated that he is confident that the impact of Trump's tariffs on US inflation will be temporary. He emphasized that monetary policy should focus on underlying inflation conditions.
"Policy should take into account the impact of tariffs and focus on core inflation, which seems to be approaching the FOMC [Federal Open Market Committee] target of 2%," he said.
Core US inflation rose less than expected in June 2025 for the fifth consecutive month, although recent data show a series of import tariffs announced by US President Donald Trump are beginning to push up prices on some goods.
Waller said inflation expectations remain controlled and wage growth is not increasing, easing concerns about the impact of sustained inflation.
" The economy is still growing, but the momentum has significantly slowed, and the risks to the FOMC's employment mandate have increased," he added.
He expects the US economy to remain weak for the rest of 2025, after growing about 1% in the first half of this year.
Other policymakers, including Federal Reserve Board member Adriana Kugler and New York Fed President John Williams, have expressed more concerns about the potential impact of Trump's tariffs on inflation, and said they would prefer to wait longer before cutting interest rates.
Investors expect the central bank to keep interest rates stable during this month's final meeting, and see slightly better chances of a rate cut in September 2025.
Waller is among the names mentioned as a potential replacement for Jerome Powell as Chair of the Fed when his term ends in May 2026. Trump, who will nominate Powell's successor, has demanded that the Fed lower interest rates.
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