Fed Governor Christopher Waller expressed tentative support for a rate cut at the December FOMC meeting, contingent on upcoming data aligning with expectations for inflation to decline toward the 2% target over the medium term.
While stating that he currently “leans toward supporting a cut,” Waller emphasized that any unexpected data could alter his forecast and influence his decision.
Waller used a vivid analogy, comparing his efforts to combat inflation to an “MMA fighter” with inflation in a “choke hold”. While it keeps “slipping away” at the last minute, he assured that “submission is inevitable” and that inflation isn’t escaping the “octagon.”
Despite slower progress on taming inflation, he highlighted broader economic stability as a factor supporting further monetary easing. Waller argued that, even after a cumulative 75 basis points in cuts, policy would remain restrictive, with additional easing simply reducing the intensity of Fed’s brake on economic activity.
