Federal Reserve's Waller: Supports a 25 basis point rate cut to stimulate economic activity

According to Jinshi reports, Federal Reserve Governor Waller issued a statement on the Fed's official website indicating that he voted against the recent Federal Open Market Committee (FOMC) meeting decision, as he believes that a 25 basis point cut in the policy rate is the appropriate stance. The three rate cuts last year have brought the policy rate closer to neutral levels, but monetary policy is still restricting economic activity, and economic data clearly indicate the need for further easing of monetary policy.

Waller stated that the total inflation rate, excluding the impact of tariffs, is close to the Fed's target value, slightly above 2%, and the labor market is weak, thus the policy rate should be closer to neutral levels (the median estimate of FOMC members is 3%).

"I support lowering the policy rate to boost the labor market and prevent economic deterioration, as once deterioration begins, it will be harder to control."