Fed’s Waller says rate cut is right move amid labor market concerns

Published 16/10/2025, 12:56
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Investing.com -- Federal Reserve Governor Christopher Waller stated Thursday that a rate cut is "the right thing to do" amid growing concerns about labor market weakness.

Speaking on Bloomberg TV, Waller emphasized that his job focuses on the labor market, which he described as "not good." He noted that "data from all sources" is telling a story of weakness in employment.

"We can cut 25 basis points, see what happens, get better idea," Waller said, suggesting a measured approach to monetary policy adjustment.

The Fed governor pointed to several factors affecting the economy, including tariff uncertainty and artificial intelligence, which he said have "put firms on back foot." He observed that business investment is "concentrated in AI, not widespread" and described the impact of AI on labor as feeling "like a structural change."

Waller expressed puzzlement over financial markets but clarified that current conditions aren’t loose for households. He estimated inflation is "about 2.5% excluding tariffs" and expressed optimism that "tariff stuff will settle out and be ok."

Regarding his potential candidacy for Fed Chair, Waller confirmed he had "a great interview with Bessent" that "went quick" and that the interview process "is going well." However, he noted he hasn’t spoken with the President and doesn’t know if he will.

Waller also emphasized that a strong economy cannot coexist with zero job growth, adding that "not much has changed in last six weeks" regarding economic conditions.

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