Fed’s Waller: Labor market remains weak
|Federal Reserve (Fed) Board of Governors member Christopher Waller said he dissented in favor of a 25 bps interest rate cut this week because monetary policy is still restricting economic activity too much, in a statement released on Friday.
Key takeaways
Dissented in favor of 25-basis point cut at last meeting because policy is still restricting activity too much.
Labor market remains weak despite solid economic growth.
Labor market does not look remotely healthy, and while supply was a factor, demand is weak.
Inflation is elevated from tariffs but monetary policy should look through those effects given anchored expectations.
Expects weak job numbers from last year to be revised lower to reflect virtually no growth in payroll employment in 2025.
Policy should be closer to neutral, perhaps around 3% vs current rate range of 3.50% to 3.75%.
Heard of multiple layoffs planned for 2026 with considerable doubt about job growth and significant risk of a substantial deterioration.
Inflation excluding tariffs is near fed's 2% goal and on path to reach it.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.