Fed governor calls for rate cut at September policy meeting

A governor of the US Federal Reserve, Christopher Waller, said Thursday that the central bank should lower its key interest rate at its upcoming monetary policy meeting.

"While I believe we should have cut in July, I am still hopeful that easing monetary policy at our next meeting can keep the labor market from deteriorating while returning inflation" to the goal of two percent, Waller said during a speech in Miami.

"So, let's get on with it," he added.


Waller's enthusiasm echoes President Donald Trump's eagerness to cut the rate that is central to US banking and borrowing.

For months the Republican president has called for the cut repeatedly, despite resistance from current Fed chairman Jerome Powell.

The next Fed meeting is slated for September 16 and 17.

During the last Fed meeting, Waller and Vice Chair Michelle Bowman both advocated for relief on rates, while the majority of members opted to maintain the status quo.

Waller, a trained economist, is among the names the Trump administration is considering for appointment to succeed Powell.

While Waller supports a cut and he continues to weigh developments, he said "I don't believe that a cut of larger than 25 basis points is needed in September."

He provided an important caveat, however, saying his view could change if the September 5 jobs report "points to a substantially weakening economy and inflation remains well contained."