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Federal Reserve Governor Waller Says FOMC Should Continue to Lower Rates at 'Moderate' Pace

BY MT Newswires | ECONOMIC | 12/17/25 08:38 AM EST

08:38 AM EST, 12/17/2025 (MT Newswires) -- The Federal Open Market Committee should continue to lower its policy rate at a "moderate" pace due to expectations of further labor market weakness, Federal Reserve Governor Christopher Waller said Wednesday in an interview with CNBC.

Waller said that nonfarm payrolls growth has been soft and is likely to be near zero after expected annual revisions early next year, noting that that is "not a healthy labor market" and is the key reason why the FOMC has done preemptive rate cuts this year.

At the same time, Waller said that he is "not particularly worried about inflation," and expects it continue to slow further in 2026, adding that the tariffs are likely to have a one-time impact and that there will not be a reacceleration of inflation.

As a result, Waller said the FOMC has more room to cut rates, with current federal funds rate target about 50 to 100 basis points above the neutral rate.

Waller is a one of the leading contenders to replace Jerome Powell as chair of the Fed next year and is expected to meet with President Donald Trump later Wednesday.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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