Particle.news
Download on the App Store

Fed Divide Widens as Waller Backs December Rate Cut

A prolonged data blackout has left policymakers leaning on private indicators, sharpening disputes over jobs versus inflation.

Overview

  • Governor Christopher Waller said he will support a 25 basis-point cut on Dec. 9–10, citing a job market near stall speed with rising jobless claims, more layoffs and muted wage pressures.
  • He argued tariff effects on prices are largely one-off and said even the delayed September jobs report is unlikely to shift his view.
  • Vice Chair Philip Jefferson called for proceeding slowly as policy nears neutral, noting uncertainty about how much official data will arrive before the meeting after the 43-day shutdown.
  • Futures now put the odds of a December move in roughly the mid-30s to mid-40s percent range, signaling a close call for a third straight cut.
  • Internal cohesion has cracked, with rare opposing dissents in October and regional presidents Susan Collins, Raphael Bostic and Jeffrey Schmid warning inflation risks favor holding rates steady.