Generally, the market expects the Fed to cut interest rates in September, but expects the probability of a 25 basis point reduction is 85%.
US President Donald Trump also said Fed Chairman Jerome Powell has put pressure on him to cut interest rates quickly, delaying his interest rates.
At this point, Fed Christopher Waller, who is close to Trump and helps cut interest rates, announced he would support interest rate cuts in September.
Speaking at the Miami Economic Club, Waller announced in September that he would support a 25 basis point cut in interest rates, saying he hopes for additional cuts in the next three to six months.
Christopher Waller, considered a potential candidate for the next federal president, said in July he wanted to cut interest rates and that his decision on the issue has increased since.
At this point, Waller said lowering interest rates would be the right move and risk management due to positive trends in core inflation and labor market risk.
With core inflation running at nearly 2%, the expectations for market-based long-term inflation are firmly fixed and there is a high chance that undesirable labor market debilitation will increase, so the correct risk management strategy is for the FOMC to lower policy rates.
“As of today, I look forward to further rate reductions in the next 3-6 months. The pace of rate reductions will be determined by incoming data.”
Waller also commented on the Genius Act, a recently enacted US stablecoin regulation bill, and said he viewed it as a good starting point.
*This is not investment advice.
