Federal Reserve Governor Christopher Waller said on Wednesday that he supports cutting interest rates at the Fed’s next meeting. He added that he expects “multiple cuts over the next few months.”
In an interview with CNBC, Waller stressed the importance of staying ahead of labor market weakness. He noted that the Fed does not need to follow a strict sequence of cuts but can adjust the pace as economic conditions evolve.
On tariffs, Waller described them as a form of tax that will likely slow U.S. economic growth this year. Still, he emphasized that tariffs are not expected to cause long-term inflation. He predicted inflation will begin moving back toward the 2% target within six to seven months and said inflation expectations remain well anchored.
Waller also commented on U.S. Treasury yields, saying the 10-year yield has remained “anchored,” while some of his Fed colleagues view the neutral rate as higher than his own estimate.
On Fed independence, he underlined that it is “critical for everything we do” and expressed confidence the central bank will maintain autonomy regardless of political pressures. He also noted that the courts will soon decide on the Cook case.
Addressing speculation about potential leadership changes, Waller confirmed he has not met with Scott Bessent regarding the Fed chair role and has no meeting scheduled.
Looking forward, Waller dismissed fears of an economic downturn, stating: “I don’t see a recession in my forecast at all.”
