Waller's Case for a July Rate Cut

United States Federal Reserve Governor Christopher Waller has publicly supported the idea of cutting interest rates as soon as July. He believes the current policy rate is "too tight" in light of recent economic indicators.

Downplaying Inflationary Concerns

During a discussion at the Federal Reserve Bank of Dallas and the World Affairs Council, Waller minimized worries about inflation linked to new tariffs. He described these as temporary events that central banks should overlook rather than address with rate increases.

Economic Justifications for Rate Reduction

With GDP growth estimated at around 2% and inflation slightly above target, Waller sees room for lowering rates. "That's my view. I'm kind of in the minority on this, but I've tried to lay out very clearly in economic terms why we could do this. It's not political," he stated.