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Federal Reserve Watch for Dec. 17: Waller Says FOMC Should Continue Rate Cuts Due to 'Soft' Labor Market

BY MT Newswires | ECONOMIC | 12/17/25 02:29 PM EST

02:29 PM EST, 12/17/2025 (MT Newswires) -- Fed Governor Christopher Waller (voter) said that the FOMC should continue to lower its policy rate at a "moderate" pace due to the soft labor market, adding that he is not concerned about a reacceleration of inflation and that tariffs are likely to have a one-time effect on price levels and not provide ongoing upward pressure.

Recent comments of note:

(Dec. 16) Atlanta Fed President Raphael Bostic (retiring in 2026) said in an essay that after a series of rate reductions, the FOMC should hold rates steady until it is clear that inflation is slowing, saying that further reductions could in fact reignite inflation. Bostic said that he did not support the rate reduction at the December FOMC meeting.

(Dec. 15) Fed Governor Stephen Miran (voter) said that shelter prices remain elevated due to supply/demand imbalances from two to four years ago and the FOMC should be focused on the outlook for inflation, not fixing issues in the past. Miran repeated his belief that housing inflation will continue to slow and that goods prices will not be lifted by tariffs to the extent that others do and that FOMC should move more rapidly to lower its policy rate closer to the neutral rate to prevent further labor market deterioration.

(Dec. 15) New York Fed President John Williams (voter) said that downside risks to employment have increased and the upside risks to inflation have softened as he expects tariffs to have a one-off price impact. Williams said that he expects real GDP growth to accelerate in 2026 and for inflation to slow.

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

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