December 17, 2025
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5:37Now PlayingConstance Hunter, Chief Economist at EIU, discusses slowing job growth and its implications for Fed policy.
Federal Reserve Governor Christopher Waller backed further interest-rate cuts to get the central bank’s setting back to neutral, while saying policymakers need not rush to do so.
Outlining a scenario where inflation continues to slow through 2026, Waller said Wednesday that monetary policy settings are up to 100 basis points above neutral — the level where the Fed is neither restraining growth nor stoking price pressures.
“Because inflation is still up, we can take our time — there’s no rush to get down,” Waller said in a CNBC forum. “We just can steadily, kind of bring the policy rate down towards neutral.”
The remarks are the first by Waller since Fed officials delivered a third consecutive interest-rate reduction last week. The decision drew three dissents for the first time since 2019, and came from both sides of the policy spectrum — highlighting deep divisions in the committee. Policymakers also subtly altered the wording of their statement suggesting greater uncertainty about when they might cut rates again.
Waller, who is under consideration to be the next Fed chair, is expected to meet for an interview with President Donald Trump later Wednesday. Asked about that, the Fed governor quipped that that’s what he’d heard.
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