Potential candidate for Federal Reserve Chairman Waller supports July interest rate cuts: This is not politics
According to online reports, Federal Reserve Governor Waller said on Thursday local time that even if the employment data in June performed strongly, the Federal Reserve should still consider cutting interest rates at the July interest-rate meeting. He emphasized in the Q & A session after the Dallas Fed's speech: "I have made my point clear-the current policy interest rate is too high, and we can discuss lowering the benchmark interest rate in July." He believes that inflation has cooled significantly, the job market has stabilized, and recent price increases triggered by tariffs are limited to specific commodities. He said,"When inflation goes down, we don't need to maintain such a tight policy stance. This is the decision-making logic that central banks should have." Waller's statement is unique not only because of the timing-the latest employment data has just shown that the labor market continues to be strong-but also because he is seen as a popular candidate for the next Fed chairman. U.S. President Trump has repeatedly criticized Powell and urged him to step down early, while Waller is seen as a potential successor because of his dovish stance. But Waller made clear on Thursday: "Although I am in the minority, I have clearly demonstrated the feasibility of cutting interest rates using economic logic. This has nothing to do with politics."
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