Federal Reserve Board Governor Waller dissents at FOMC and argues for 25 basis point policy rate cut

Federal Reserve Board Governor Christopher J. Waller published a statement explaining his dissent at the most recent Federal Open Market Committee meeting, arguing that a 25 basis point cut in the policy rate would have been the appropriate stance. He assessed that, despite three rate cuts in 2025, policy remained restrictive and further easing was needed. The statement pointed to a weak labor market alongside inflation that is near the 2 percent objective once tariff-related effects are excluded. Waller noted that the unemployment rate has risen since mid-2025 and that payrolls increased by just under 600,000 in 2025 versus a prior 10-year average of about 1.9 million, with forthcoming revisions likely to show virtually no employment growth, and he cited outreach indicating planned layoffs in 2026. On inflation, he argued policymakers should look through tariff-driven price increases while inflation expectations remain anchored, and he referenced a median FOMC estimate of the neutral rate at 3 percent, describing the current policy rate as 50 to 75 basis points above that level.