Federal Reserve Governor Waller Sends Clear Dovish Signal: Supports Rate Cut in July

According to ChainCatcher, citing Jinshi News, Federal Reserve Governor Waller recently stated that he supports the idea of considering an interest rate cut in July and believes that tariffs will not lead to sustained inflation. He noted that tariffs are a one-off factor and that the Fed should not wait until the job market collapses before cutting rates. Waller said that the current job market is stable, but some signs are emerging, such as a higher unemployment rate among recent graduates. For the past six months, the Fed has been on the sidelines, waiting for an inflation shock. Waller believes the Fed has room to lower interest rates and then observe what happens with inflation. He indicated that the earliest the Fed could be in a position to cut rates is July. Before Waller made these remarks, the market had only priced in a 14% chance of a Fed rate cut in July.