Fed Governor Waller Issues Statement Reaffirming Support for Rate Cut Stance

January 30 — Federal Reserve Governor Christopher Waller released a statement on the Fed’s official website, noting he dissented at the recent Federal Open Market Committee (FOMC) meeting because he argued a 25-basis-point policy rate cut was the appropriate move. Three rate cuts last year had already brought the policy rate closer to neutral, though monetary policy still constrained economic activity. Economic data also clearly pointed to the need for additional monetary easing, he said. Waller added total inflation (excluding tariff impacts) was near the Fed’s 2% target—slightly above that level—and the labor market was soft. Thus, the policy rate should be closer to neutral, with FOMC members’ median estimate at 3%. “I back cutting the policy rate to strengthen the labor market and head off economic deterioration,” he stated. “Once deterioration begins, it’s harder to reverse.”