Overview

• Waller told CNBC he supports further easing but favors 25-basis-point steps taken cautiously.
• He pointed to private indicators, including an ADP reading showing a contraction, as evidence the labor market is losing steam with the September jobs report delayed by a government shutdown.
• He contrasted soft employment signals with still-solid GDP and warned that a large move such as a 75-basis-point cut could be a mistake.
• The Fed trimmed rates by 25 basis points in September, while Governor Stephen Miran has pushed for faster and larger reductions.
• Markets expect quarter-point cuts at the October and December meetings, with the next FOMC decision set for Oct. 28–29.