Breaking News: Fed Governor Christopher Waller Says Rates Could Be Cut by as Much as a Full Point — FT.com
Waller Sees Room for Rate Cuts Amid Job Market Weakness
There may be hope for the economy in the near term. Just published in the FT.com
US borrowing costs should be as much as a percentage point lower, according to Federal Reserve governor Christopher Waller, ahead of an interview with President Donald Trump to be the next chair of the country’s central bank. Waller, a top Fed official and the leading internal candidate to lead the central bank, warned that American jobs growth was now “close to zero” and said interest rates should be lowered “at a moderate pace” next year to support a waning labour market. “We’re close to zero jobs growth — now that’s not a healthy labour market,” he told the Yale CEO Summit on Wednesday.
Waller says “Fed policy still in restrictive territory, sees room to cut rates” - Reuters.com
“I still think we’re probably, you know, maybe we’re 50 to 100 basis points off of neutral,” which means the Fed still has room to cut interest rates if it needs to, Waller said at the Yale School of Management CEO Summit in New York.