Catenaa, Thursday, November 20, 2025- Federal Reserve Governor Christopher Waller has voiced support for another interest rate reduction at the central bank’s December meeting, reports said.
Reports said the he cited a weakening labor market and slowing hiring as key concerns.
Waller called for a quarter-percentage-point cut to help stabilize employment amid ongoing economic uncertainty.
The comments highlight a growing divide within the Fed, with some policymakers warning that further easing could reignite inflation, while Waller and others emphasize labor market pressures.
He said recent data, even amid the government shutdown, show sustained softening in hiring and demand, justifying additional policy support.
Waller added that he is not concerned about inflation accelerating or expectations rising, and described a December rate cut as a form of “risk management” to protect lower- and middle-income consumers. The rate-setting Federal Open Market Committee meets Dec. 9–10, following consecutive 25-basis-point reductions in September and October.
Other Fed officials have voiced caution. Vice Chair Philip Jefferson urged a slow approach, while Boston Fed President Susan Collins said the bar for more easing remains high.
Waller’s position contrasts with some colleagues who favored larger cuts in prior meetings, reflecting his focus on sustaining employment rather than responding to inflation concerns.
Waller emphasized that private-sector and partial public data provide an actionable picture of economic conditions despite the recent shutdown.
He said policymakers can continue incremental rate adjustments to maintain stability, signaling a readiness to act if the labor market continues to weaken in the final months of 2025.
