Fed’s Waller says interest rate cuts could happen as soon as July

The Federal Reserve was affected by reducing interest rates in 2025 so far, although a member of the Governor’s Council indicates that it may change early next month.

CNBC, the CNC, said that the central bank is in a position allowing it to start lowering prices starting next month.

“I think we can do it early in July,” Waller told the port. “This will be my opinion, whether the committee will agree with it or not.”

Waller’s comments come after the Federal Reserve announced on Wednesday that it will keep the standard interest rate fixed at a range of 4.25 % to 4.5 % for the fourth consecutive meeting. The head of the Federal Reserve, Jerome Powell, said that the central bank is monitoring inflation and labor market data amid uncertainty resulting from the Trump administration tariff policies.

The Federal Reserve leaves the main interest rate unchanged for the fourth consecutive meeting

Powell explained that “the current position of monetary policy leaves us in a good position to respond in time for possible economic developments.”

He added that the labor market “is in or near the maximum employment” while continuous inflation remains “somewhat higher our longer goal in the term 2 %.”

The point of view is that the central bank should not wait for a deterioration in the labor market to take action, on the pretext that “if you start concern about negative risks [to the] Labor market, move now, don’t wait. Why do we want to wait until we already see an accident before we start lowering prices? ”

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Federal Reserve Chairman Jerome Powell says the central bank is in a good position to respond to changes in economic conditions and not in a hurry to reduce prices. (Reuters/Amanda Andradi Rhodes/Photo/Reuters photos)

Waller told CNBC: “So I all support the saying, perhaps we must start thinking about reducing the policy price at the next meeting, because we do not want to wait until we reach the labor market tanks before we start reducing the policy rate,” adding that the Federal Reserve must “start slowing” in reducing interest rates “only to ensure that there is no big surprises.”

“We have stopped for six months to wait and see, and so far, the data has been good,” Waller said. “I don’t think we need to wait longer, because even if the definitions appear at a later time, the effects are still the same.

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Trump has appointed Powell as head of the Federal Reserve lectures during his first term, although he indicated that he would not reset him again. (Olivier Douliery / Bloomberg via Getty Images / Getty Images)

president Donald Trump has been a vocal critic of the Federal Reserve’s reluctance to reduce interest rates in the face of economic uncertainty that stems in a large part of the definitions and commercial policy.

Trump has also reduced the President of the Federal Reserve Powell, describing him as a “stupid person” and “Numskull” in recent weeks as he pressed interest rate discounts.

After Waller’s comments, the possibilities of lowering prices at the next meeting of the Federal Reserve coach in July were slightly higher but remained a long relative shot, increasing from 12.5 % to 14.5 %, according to the CME Fedwatch tool, which follows the possibility of average movements.

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The tool has shown that the market believes that the subsequent meeting in September is the most likely time to reduce the following price, with a 61.8 % chance to reduce the 25 Basis point in that meeting.