Fed’s Waller backs September rate cut, sees multiple reductions ahead

Article originally posted on HERE on September 3, 2025

Investing.com — Federal Reserve Governor Christopher Waller reiterated his support for an interest rate cut at the September meeting, citing weakening labor market conditions.

“I think we need to start cutting rates at the next meeting, and then we don’t have to go in a locked sequence of steps,” Waller said Wednesday in a CNBC interview. “We can kind of see where things are going, because people are still worried about tariff inflation.”

Waller indicated that the pace of future rate cuts would depend on economic developments. “I would say over the next three to six months, we could see multiple cuts coming in,” he stated, adding that the frequency of cuts – whether at every meeting or every other meeting – would be determined by incoming data.

The Fed governor acknowledged potential short-term inflation concerns but expressed confidence that price pressures would ease. “We know we’ll have a blip of inflation but it won’t be permanent, 6 months out will be closer to 2%,” Waller said.

He emphasized the central bank’s flexibility in adjusting its approach, noting “we can always adjust rate-cut pace” based on economic conditions.

When asked about the U.S. economic outlook, Waller said he doesn’t “see recession, but slower growth” ahead.

Waller declined to comment on Fed Governor Lisa Cook’s case, which is currently in the courts. He affirmed the importance of the Federal Reserve’s independence, stating “Fed’s independence is critical, believe we have independent Fed.”

Regarding speculation about leadership positions, Waller confirmed he has not had an interview for the Fed Chair job and doesn’t “have interview scheduled at this point.”