20.06.2025 14:24

Federal Reserve Governor Christopher Waller ignited speculation on Friday, suggesting potential interest rate cuts could commence as early as the July meeting. This proactive stance, revealed during a CNBC interview, directly addresses President Trump's persistent calls for rate reductions. Waller's statement implies a willingness to act preemptively, rather than waiting for demonstrably worsening economic conditions.

He voiced his personal preference for a rate cut at the July 29-30 Federal Open Market Committee (FOMC) meeting. However, Waller cautiously acknowledged that his viewpoint might not represent the entire committee's consensus. This statement follows the FOMC's recent decision to maintain the benchmark interest rate, marking the fourth consecutive hold since the last decrease in December 2024. This underscores the ongoing internal debate within the Federal Reserve.

President Trump, who appointed both Jerome Powell and Waller, has intensified his pressure on the Fed. He contends that elevated interest rates are stifling economic growth and exacerbating the burden of servicing the nation's substantial $36 trillion national debt. Trump's demands for a significant rate reduction, even suggesting a decrease of 2.5 percentage points, have been notable. While Chairman Powell has previously resisted these pressures, Waller's comments hint at a potential shift in the Fed's stance.

Despite the internal pressure for a rate cut, Chairman Powell continues to advocate for a cautious approach. Waller, however, expressed his opposition to waiting for an economic downturn before acting. His proactive suggestion for initiating rate cuts at the upcoming meeting signals a growing internal movement toward at least a modest reduction, potentially the first since Trump's return to office. This internal division among the Fed governors is becoming increasingly apparent. The question of whether the full FOMC will concur with this more aggressive approach remains to be seen.