Fed's Waller Advocates For 25-Basis-Point Rate Cut; Governor Miran Prefers More Aggressive Move

03:57 PM EDT, 10/16/2025 (MT Newswires) -- The Federal Reserve should cut interest rates by 25 basis points later this month, Governor Christopher Waller said Thursday, while his colleague, Stephen Miran, pushed for a more aggressive easing stance.

Macro data are giving "conflicting" signals, with economic activity seeing solid growth and labor marking softening, Waller said in remarks prepared for a speech in New York.

"Something's gotta give -- either economic growth softens to match a soft labor market, or the labor market rebounds to match stronger economic growth," he said. "Since we don't know which way the data will break on this conflict, we need to move with care when adjusting the policy rate to ensure we don't make a mistake that will be costly to correct."

An ongoing US federal government shutdown has delayed key economic reports, including on consumer and producer prices, that would have helped assess progress on policymakers' price-stability target, Waller said.

"Based on all of the data we have on the labor market, I believe that the (Federal Open Market Committee) should reduce the policy rate another 25 basis points at our meeting that concludes (Oct. 29)," he said. "But beyond that point, I will be looking for how the solid GDP data reconcile with the softening labor market."

Separately, recently appointed Fed governor Miran told Fox Business that he would favor a half-percentage-point rate cut at the October meeting.

"My view is that it should be 50" basis points, Miran reportedly said. However, the FOMC will likely vote for another 25-basis-point cut, he said.

"I think that we're probably set up for three 25-basis-point cuts this year, for a total of 75 basis points this year," Miran said during the Fox Business interview.

Earlier this week, the Fed's latest Beige Book showed US economic activity was little changed since early September as prices increased further, while labor demand was "generally muted." Fed Chair Jerome Powell said that downside risks to employment seemed to have increased in a "somewhat softer" labor market.

Markets widely expect the Fed to lower its benchmark lending rate by a quarter percentage point on Oct. 29, following a similar move last month, according to the CME FedWatch tool.

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