Federal Reserve Governor Christopher Waller signaled strong support for a 25 basis point interest rate cut at the central bank’s upcoming September meeting, reiterating a position he favored in July.
However, his renewed call for a modest cut, despite his own assessment of a deteriorating economy, has prompted one economist to question why he isn’t advocating for a more aggressive 50 basis point reduction.
Waller Supports 25 Bps Cut In September, But Why Not 50?
“Based on what I know today, I would support a 25 basis point cut at the Committee’s meeting on September 16 and 17,” Waller said, adding, “I don’t believe that a cut of larger than 25 basis points is needed in September”.
This stance drew a reaction from Craig Shapiro, a macro strategist at the Bears Trap Report. On the social media platform X, Shapiro questioned the logic of sticking to the same cut size amid worsening conditions.
“If Waller wanted a rate cut in July and he is saying the labor data is even worse now than he thought then, why not push for 50bps cut in September at this point ?” Shapiro …