Fed's Waller Makes the Case for a Rate Cut in December

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Transcript

00:00With underlying inflation close to the FOMC's target and evidence of a weak labor market,

00:05I support cutting the committee's policy rate by another 25 basis points at our December meeting.

00:12For reasons I have explained, I am not worried about inflation accelerating

00:16or inflation expectations rising significantly.

00:20My focus is on the labor market, and after months of weakening,

00:24it is unlikely that the September jobs report later this week or any other data that's going to come out in the next few weeks

00:32is going to change my view that another cut is in order.

00:36I worry that restrictive monetary policy is weighing on the economy,

00:40especially how it is affecting lower and middle income households.

00:45A December cut will provide additional insurance against an acceleration in the weakening of the labor market

00:50and move policy toward a more neutral setting.