●• Fed Governor Waller explicitly backs a rate cut for the December meeting
●• Cites labor market concerns over inflation as the primary driver
●• Market odds for a December cut jumped from ~27% to over 70% following the news
Federal Reserve Governor Christopher Waller has publicly advocated for an interest rate cut at the upcoming December meeting. He emphasized his concern regarding the softening labor market while noting that inflation is currently less of a dominant issue compared to employment stability.
Following his remarks, market expectations for a December rate cut surged significantly. Data indicates that the implied odds of a cut jumped from approximately 27% to over 70%, reflecting a swift shift in trader sentiment driven by Waller's comments.