Federal Reserve Chairman Potential Candidate Waller Supports July Rate Cut: It's Not About Politics

Federal Reserve Governor Waller stated on Thursday local time that even if the June employment data is strong, the Federal Reserve should still consider cutting interest rates at the July interest rate meeting. He emphasized during the Q&A session after his speech at the Dallas Fed: "I have made my point clear - the current policy interest rate level is too high, and we can discuss lowering the benchmark interest rate in July." He believes that inflation has cooled significantly, the job market has stabilized, and the recent price increases caused by tariffs are limited to specific goods. He stated, "When inflation is falling, we don't need to maintain such a tight policy stance. This is the decision-making logic that a central bank should have." The special nature of Waller's statement lies not only in the timing—the latest employment data just showed that the labor market continues to be strong—but also because he is regarded as a popular candidate for the next Federal Reserve Chairman. U.S. President Trump has repeatedly criticized Powell and urged him to step down early, and Waller is regarded as a potential successor due to his dovish stance. But Waller made it clear on Thursday: "Although I am in the minority, I have clearly demonstrated the feasibility of cutting interest rates with economic logic. This has nothing to do with politics." [Odaily Planet Daily]