Christopher Waller, governor of the US Federal Reserve, addressed the C. Peter McColough Series on International Economics at the Council on Foreign Relations in New York, US, on Thursday, Oct. 16, 2025.
On Monday, Waller advocated for a further interest rate reduction during the Fed's December meeting, highlighting growing concerns over the labor market and a sharp slowdown in hiring.
His statements align him with those at the Fed who support easing monetary policy to prevent further deterioration in employment. Contrasting opinions have been expressed by several regional Fed presidents, who argue against more cuts due to inflation fears.
"I am not worried about inflation accelerating or inflation expectations rising significantly," Waller mentioned in his prepared remarks, delivered to economists in London. "My focus is on the labor market, and after months of weakening, it's unlikely that the upcoming September jobs report or any other data in the subsequent weeks would alter my stance that another rate cut is necessary."
The Federal Open Market Committee's next meeting is scheduled for December 9-10. Market opinions are divided regarding potential decisions, especially after consecutive 25 basis point reductions at meetings in September and October.
Earlier the same Monday, Vice Chair Philip Jefferson was cautious about the forthcoming meeting, suggesting policymakers should "proceed slowly" with any further rate cuts. Concurrently, Boston Fed President Susan Collins indicated a "high bar" for more easing.
Waller specified his support for another quarter-point cut. Governor Stephen Miran, another appointee of President Donald Trump like Waller, favored larger half-point reductions at the previous two meetings.
While Waller has been a consistent advocate for rate cuts, he adjusted his comments to reflect recent developments. Due to the government shutdown, he referred to various data points indicating weak labor market demand and consumer pressure.
Furthermore, he noted that current price data suggests tariffs will not significantly impact long-term inflation, adding that another rate cut would be an exercise in "risk management," a concept Chair Jerome Powell has also recently discussed.
"I worry that restrictive monetary policy is weighing on the economy, particularly affecting lower-and middle-income consumers," Waller stated. "A December cut would serve as added protection against a further decline in the labor market, moving policy towards a more neutral stance."
Waller dismissed claims that the Fed is "flying blind" due to the suspension of official government economic data amid the shutdown. "Despite the government shutdown, we have a wealth of private and some public-sector data that provide an imperfect but perfectly actionable picture of the U.S. economy," he concluded.