Fed Governor Waller sends a clear dovish signal: in favor of a rate cut in July

Odaily News Federal Reserve Board Governor Waller recently said that he agrees that a rate cut should be considered in July and believes that tariffs will not lead to sustained inflation. He said that tariffs will be a one-time factor and the Fed should not wait until the job market collapses before cutting interest rates. Waller said that at present, the job market is stable, but some signs are beginning to appear, such as high unemployment rates among recent graduates. For six months, the Federal Reserve has been waiting and watching, waiting for the inflation shock to come. Waller believes that the Federal Reserve has room to lower interest rates and then see what happens with inflation. Waller said that the Federal Reserve may have the conditions to cut interest rates as early as July. Before Waller made these remarks, the market bet that the Federal Reserve had only a 14% chance of cutting interest rates in July. (Jinshi)