Federal Reserve Governor Christopher J. Waller, who cast one of two dissenting votes at the July meeting of the Federal Open Market Committee (FOMC), has once again voiced his support for a reduction in the central bank’s benchmark interest rate.
Speaking at the Economic Club of Miami on Thursday evening, Waller emphasized that recent economic data continues to support his view that a shift in monetary policy is necessary. “Since I last spoke on the economy and monetary policy on July 17, economic data have reinforced my view of the outlook and my judgment that the time has come to ease monetary policy and move it to a more neutral stance,” he said.
Waller expressed concern about signs of weakening in the labor market, stating that he expects the upcoming August nonfarm payrolls report, due on September 5, to be disappointing. He cited declining labor demand and recent revisions from the Bureau of Labor Statistics that suggest potential job losses in recent months.
As a result, Waller reiterated his call for a 25-basis-point cut to the effective federal funds rate at the FOMC’s upcoming September meeting. “While I believe we should have cut in July, I am still hopeful that easing monetary policy at our next meeting can keep the labor market from deteriorating while returning inflation to the FOMC’s goal of 2%,” Waller stated. “So, let’s get on with it.”
