Fed’s Governor Signals July Rate Cut Possible as Inflation Fears Fade
Federal Reserve Governor Christopher Waller said Friday that the central bank could begin cutting interest rates as soon as July, citing a fading inflation threat and a need to shift policy gradually.
In an interview with CNBC, Waller expressed confidence that inflation is no longer a pressing issue. He downplayed concerns over tariffs driving price pressures, stating they were unlikely to significantly impact inflation dynamics.
“I think we’re in the position that we could do this as early as July,” Waller told CNBC’s Steve Liesman. “That would be my view, whether the committee would go along with it or not.”
His remarks follow the Federal Open Market Committee’s (FOMC) decision earlier this week to hold interest rates steady for a fourth consecutive time since December. The current rate pause reflects a cautious stance as the Fed evaluates incoming economic data.
Waller emphasized that while rate cuts should be approached carefully, current conditions support an initial move lower. Markets are now increasingly pricing in the possibility of a July cut, which would mark a major shift in the Fed’s monetary stance heading into the second half of 2025.
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