Why does Fed Governor Waller support a rate cut?

Waller supports a rate cut as a risk management measure due to a weakening labor market and slowing economic growth in late 2025.

When will the Federal Reserve decide on interest rates?

The Federal Open Market Committee (FOMC) is scheduled to decide on interest rates at its meeting on December 9-10, 2025.

What are the signs of a weakening US labor market?

Signs include low job creation, declining job postings, and reports of companies planning layoffs.

Home / Business and Economy / Fed's Waller Eyes Rate Cut Amid Labor Market Fears

Fed's Waller Eyes Rate Cut Amid Labor Market Fears

19 Nov, 2025

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Summary

Fed Governor Waller supports a 25 basis point rate cut in December.
Labor market indicators show weakening, prompting risk management.
Economic growth is slowing in the second half of 2025.

Fed's Waller Eyes Rate Cut Amid Labor Market Fears

Federal Reserve Governor Christopher Waller has publicly advocated for a 25 basis point reduction in the FOMC's policy interest rate during the December 9-10 meeting. He cited growing concerns over a deteriorating labor market and decelerating economic growth projected for the latter half of 2025 as primary drivers for this monetary easing.

Waller highlighted several labor market signals, including significantly lower-than-expected job creation in recent months and a decline in job postings. He also noted employer surveys and CEO discussions indicating potential increases in layoffs, partly due to automation advancements, suggesting a tougher job market ahead.