Federal Reserve Watch for Jan. 30: Waller Favored Further Rate Cut Due to Weak Labor Market; Warsh Nominated to be Fed Chair

02:35 PM EST, 01/30/2026 (MT Newswires) -- Fed Governor Christopher Waller (voter) said that he dissented in favor of a 25-basis point rate cut at the January FOMC meeting because he believes the current stance of policy is still restrictive given the ongoing weakness in the labor market and an inflation rate that is near the 2% goal when temporary tariffs impacts are removed.

US President Donald Trump announced that he is nominating former Fed Governor Kevin Warsh to replace Jerome Powell as Fed Chairman when Powell's term ends in May.

Recent comments of note:

(Jan. 28) Fed Chairman Jerome Powell (voter) saif that the economy is in a good position to start 2026, evidenced by data that is shaking of the impact of the federal government shutdown, but also emphasized that risks remain to both sides of the mandate that the FOMC will need to consider before moving the federal funds rate lower. Powell would not comment on the ongoing legal cases involving the Fed, nor would he say whether he plans to stay on as Fed governor after his role as the chairman ends in May.

(Jan. 28) The Federal Open Market Committee decided to maintain its current target range for the federal funds rate at 3.50% to 3.75% and made changes to its statement that suggest more solid economic growth, stable unemployment and less inflation concern. However, the FOMC's statement also acknowledged that job gains have remained low. Fed Governors Miran and Waller both dissented in favor of 25-basis point rate reductions.

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