Federal Reserve governor Christopher Waller has said he could back a jumbo rate cut at the US central bank’s next policy vote should August jobs data signal a “substantial weakening” in the world’s largest economy.
The Fed is widely expected to cut borrowing costs by 0.25 percentage points at its next interest rate vote, set for September 17, following signs that the US labour market is weakening and signals from senior rate-setters — including chair Jay Powell — that any hit to inflation from tariffs will prove a one-off shock, and not a persistent problem.
Waller, who is on President Donald Trump’s list to succeed Powell as chair next year, said in Miami on Thursday that “based on the data in hand”, he did not “believe that a cut of larger than [0.25 percentage points] is needed in September”.