Fed’s Chris Waller Reiterates Support for Rate Cuts but Urges Caution On Pace

Boluwatife Adeyemi
4 hours ago
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An image of Chris Waller and his talk on the Fed rate cuts

Highlights

  • The Fed Governor said that he believes they need to make more rate cuts.
  • Waller added that they need to be cautious about the pace.
  • He believes that the current pace is fine and he doesn't think they should move faster than this.

Fed Governor Chris Waller has again expressed support for additional Fed rate cuts. However, he called for caution on the magnitude of the cuts due to mixed economic signals regarding inflation and the labor market. Meanwhile, the crypto market is currently pricing in an additional 25 basis points (bps) rate cuts at both the October and December FOMC meetings.

Chris Waller Backs More Fed Rate Cuts

The Fed Governor said during a CNBC interview that he still believes that they need to cut rates, but that they need to be cautious about it. He further remarked that he was fine with the pace at which they were moving, but doesn’t think they should move any faster.

Notably, Waller had been one of the Fed officials who actively advocated for Fed rate cuts even before the FOMC made the first rate cut at the September meeting. He and Fed Governor Michelle Bowman were the only ones who dissented in favor of a 25 basis points (bps) cut at the July FOMC meeting.

With the Fed now looking to be on a path of monetary easing, the magnitude of the cuts is now in focus. Fed Governor Stephen Miran has called for a series of 50 bps cuts and dissented in favor of one at the September FOMC meeting. However, Waller is more comfortable with an additional 25 bps Fed rate cuts at the October and December meetings.

The Need For Caution

The Fed Governor noted that on the one hand, the U.S. labor market is weakening, indicating a slowdown in the economy. On the other hand, the GDP is strong, and concerns over inflation risks persist, as inflation remains well above their 2% target.

Therefore, he wants them to move at a pace that allows them to easily pivot if necessary. “I want to move towards cutting rates, but you’re not going to do it aggressively and fast, in case you make a big mistake on which way that things go,” Waller said.

Meanwhile, the Fed Governor is the latest Fed official to back more Fed rate cuts this year. As CoinGape reported, Fed Presidents John Williams and Mary Daly have already shown their support for additional rate cuts amid concerns about the labor market.

Fed Governors Michelle Bowman and Stephen Miran also indicated that they will support more cuts. However, officials like Fed Governor Michael Barr are leaning towards the inflation risks and are more cautious about adjusting monetary policy.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.