Fed Governor Waller Advocates Multiple Interest Rate Cuts Starting September

Federal Reserve Governor Christopher Waller, a potential successor to Jerome Powell as Fed chair in 2026, has publicly advocated for starting interest rate cuts at the Federal Reserve's September meeting, signaling a possible shift toward easing monetary policy. Waller emphasized the flexibility in pacing these cuts, suggesting they could be spaced out or more frequent depending on economic data, and downplayed concerns about tariff-related inflation. He projects that inflation will approach the Fed's 2% target within six months and stressed the importance of maintaining the Fed's independence amidst political pressures. Waller's dovish stance contrasts with more cautious views within the Fed and has sparked significant discussion about the timing and impact of rate reductions to support economic growth without triggering a recession. His comments reflect an evolving view that the current interest rates are above neutral and that multiple cuts may be needed over the coming months. The market reaction to his remarks has been muted so far, though the implications for borrowing costs, investment, and currency strength remain closely watched.