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2w ago

Fed Governor Waller Calls for July Rate Cut, Challenging Powell's Stance

Slowing economic momentum with temporary tariff inflation warrants a 25 basis-point reduction at the July meeting.

Federal Reserve Board Chairman Jerome Powell listens during a hearing of the House Committee on Financial Services on Capitol Hill, Tuesday, June 24, 2025, in Washington. (AP Photo/Mark Schiefelbein)
Christopher Waller testifies before the Senate Banking, Housing and Urban Affairs Committee during a hearing on their nomination to be member-designate on the Federal Reserve Board of Governors on February 13, 2020 in Washington, DC.
Federal Reserve Governor Christopher Waller speaks during the Clearing House Annual Conference in New York City, U.S. November 12, 2024. REUTERS/Brendan McDermid/File Photo
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Overview

  • Waller urged a 25 basis-point cut at the July 29–30 meeting, warning that delaying policy easing could leave the Fed behind the curve.
  • He cited significant slowing in growth alongside elevated risks to the labor market as grounds for preemptive action.
  • He said inflation pressures from President Trump's tariffs are transitory and should not deter a rate reduction.
  • Chair Jerome Powell and most FOMC members prefer to hold rates steady pending more data on inflation and growth.
  • President Trump has escalated public pressure for lower rates and threatened to fire Powell over the hold on policy.