Waller: Never want to commit to an action before a Fed meeting

Waller: Never want to commit to an action before a Fed meeting

Federal Reserve Governor Chris Waller has reiterated his stance on the upcoming Federal Open Market Committee (FOMC) meeting, emphasizing that he would never commit to a specific action before the meeting. Waller, a strong advocate for an immediate interest rate cut, made this statement during an interview with Bloomberg Television [1].

Waller, who has been vocal about his concerns regarding the economy and private-sector hiring, believes that the current tariffs are unlikely to have a significant impact on inflation. He has been pushing for a rate cut at the upcoming July 29-30 meeting, arguing that the Fed should "get ahead" of a possible hiring slowdown despite the low unemployment rate [1].

The Fed is widely expected to keep its benchmark interest rate steady in the 4.25%-4.50% range at its upcoming meeting. However, Waller and another Trump appointee, Fed Vice Chair for Supervision Michelle Bowman, favor a rate cut in the near future, while eight of their colleagues have indicated a reduction in the policy rate could happen in September [1].

Waller's stance is not seen as political by economists, who credit him for making a cogent case for lower rates despite administration officials' attempts to pressure Powell over the Fed's reluctance to cut rates. Powell has vowed to remain Fed chief until his term expires in May, despite Trump's repeated demands for his resignation [1].

Waller's comments come amidst a backdrop of increasing pressure from President Trump on the Fed to reduce rates. Trump has launched a barrage of nearly daily criticism at Fed Chair Jerome Powell over the central bank's reluctance to cut rates due to concerns about the administration's trade and tariff policies increasing inflation [1].

The G20 finance leaders' communique, issued on Friday, emphasized the importance of central bank independence following a two-day meeting in Durban, South Africa. This communique underscores the need for central banks to focus on inflation and adjust their policies in a data-dependent manner, without political interference [1].

References:
[1] https://www.reuters.com/business/waller-says-hes-willing-to-lead-fed-if-trump-asks-no-contact-so-far-2025-07-18/