Federal Reserve Governor Christopher Waller indicated that interest rate cuts could happen as soon as next month, aligning with President Donald Trump's appeal.
Possible Rate Cuts in July
Waller stated in an interview on CNBC that policymakers should not wait for economic conditions to deteriorate before taking action. "I think we’re in the position that we could do this and as early as July," he mentioned, hinting at a potential rate cut at the upcoming FOMC meeting set for July 29–30.
Support from President Trump
President Trump, who appointed Jerome Powell as Fed Chair and nominated Waller during his first term, has argued that high rates are choking economic growth and raising the cost of servicing the $36 trillion national debt. He has called for a reduction of at least two percentage points.
Division Among Fed Members
Although Waller is a voting member of the FOMC, the rate decision was unanimous on Wednesday. According to the Fed's dot plot, seven of the 19 officials expect no change in rates through the end of the year. Yet, two anticipate a single cut, while ten project two or more reductions in 2025.
Waller's remarks indicate an internal discussion within the Fed regarding the possibility of rate cuts, which could mark the first step in this direction since Trump's return to the White House.
