Fed Governor Christopher Waller speaks on Bloomberg TV

Fed Governor Christopher Waller speaks on Bloomberg TV

Federal Reserve Governor Christopher Waller has publicly expressed his intention to dissent if his colleagues at the Federal Open Market Committee (FOMC) vote to hold interest rates steady at their July meeting. Waller's stance is driven by his belief that the US labor market is in need of support, and he has cited recent data indicating a slowdown in private-sector job growth and a deceleration in wage growth [1].

In a Bloomberg TV interview, Waller emphasized that officials should dissent if they believe it is necessary to support the economy. He compared his current situation to his dissent on the balance sheet slowdown earlier this year, stating that he felt the Fed should not have slowed down the balance sheet reduction [1].

Waller's primary concern is the health of the private sector, which he believes is not doing as well as perceived. He noted that most of the employment growth in recent months has come from the public sector, indicating a weak private-sector job market [1]. This sentiment is supported by the June employment report, which showed a sharp slowdown in private-sector job growth and a deceleration in wage growth, despite a decrease in the unemployment rate [1].

Waller also addressed the impact of tariffs on inflation, stating that the price hit from tariffs is likely to be temporary and that inflation expectations are not on the rise. This allows him to advocate for an immediate rate cut, despite concerns from other policymakers who worry that tariffs could reignite inflation [1].

The interview comes at a time when the Fed is under pressure from President Donald Trump to ease monetary policy. Trump has criticized the Fed's reluctance to cut rates due to concerns about his administration's trade and tariff policies increasing inflation. Waller, who has been mentioned as a potential successor to Jerome Powell, stated that he would accept the job if asked by Trump but noted that Trump has not contacted him about it yet [2].

Waller's advocacy for a rate cut has been met with mixed reactions from the financial community. While some economists have praised his cogent case for lower rates, others have expressed concern about the political implications of a rate cut. The debate is further complicated by the ongoing renovation of the Fed's headquarters, which has been a source of contention between the administration and the central bank [2].

In the meantime, gold prices have steadied and are expected to see a moderate weekly loss as investors assess the outlook for Federal Reserve rate cuts. The metal has been trading within a tight range, awaiting clearer policy direction from the Fed [3].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-18/fed-s-waller-says-private-sector-job-worries-drive-rate-cut-call
[2] https://nypost.com/2025/07/18/business/fed-governor-chris-waller-says-hes-willing-to-lead-fed-if-trump-asks/
[3] https://www.bloomberg.com/news/articles/2025-07-18/gold-steady-as-traders-weigh-us-economy-rate-cut-directions