The Federal Reserve Board of Governors member Waller stated: supports a rate cut in July, with market betting odds at only 14%.

PANews reported on June 20 that Federal Reserve Governor Waller recently said that he agrees with the statement that interest rate cuts should be considered in July, believing that tariffs will not lead to sustained inflation. He said tariffs would be a one-time factor and that the Fed should not wait until the job market collapsed to cut rates. Currently, Waller said, the job market is stable, but some signs are beginning to emerge, such as a high unemployment rate among recent graduates. For six months, the Fed has been on the sidelines, waiting for the inflation shock to arrive. Waller believes that the Fed has room to lower interest rates and then see what happens to inflation. Waller said the Fed could be in a position to cut interest rates as early as July. Prior to Waller’s remarks, markets were betting on a 14% chance that the Fed would cut rates in July.