Christopher Waller, the governor of the Federal Reserve, is one of the contenders for the position of Fed chair.
Christopher Waller, the governor of the Federal Reserve, stated that he is unlikely to change his mind about supporting a further quarter-point reduction in a key U.S. interest rate in December in order to help improve the country’s struggling labor market.
The powerful governor, who is a contender to succeed Jerome Powell as Fed chair next year, stated Monday that he is less concerned about inflation and that the labor market is weakening.
Based on consumer and business studies, as well as his personal connections with major employers, Waller stated that he is certain that the job market has deteriorated. He said it is unlikely that crucial job data that was delayed during a record 43-day government shutdown will reveal otherwise when it is made public.
In a speech in London, Waller stated that the data indicates “that the labor market is still weak and near stall speed.”
In contrast, Waller contended that inflation had not significantly increased in recent months. He claimed that consumer spending has been impacted by a sluggish economy and persistently high interest rates, which has helped to control inflation.
“With the evidence of slower economic growth and the prospect of only modest wage increases from the weak labor market, I don’t see any factors that would cause an acceleration of inflation,” Waller stated.
The Fed will vote on whether to lower interest rates for the third time this year at its next meeting, which is scheduled for December 9–10.
With inflation still near 3% per year, Waller continues to urge a rate cut, but a number of other top Fed officials have stated they are unlikely to do so.
How many official government reports Fed officials will have at their meeting is currently unknown.
Thursday will see the release of the September jobs data, which has been postponed for almost two months. The closure, which lasted from October 1 to November 14, caused other important statistics on inflation and employment to be delayed, and government agencies are still figuring out when to release them.
According to Waller, additional public and private data sources continue to show a deteriorating labor market and slower consumer spending, particularly among lower- and middle-income households that haven’t profited much from record stock market gains.
“After months of weakening, it is unlikely that the September jobs report later this week or any other data in the next few weeks would change my view that another cut is in order,” Waller stated. “I worry that restrictive monetary policy is weighing on the economy, especially about how it is affecting lower- and middle-income consumers.”
