Federal Reserve Governor Christopher Waller signaled Friday that the central bank could begin easing interest rates as early as next month.
Federal Reserve officials are signaling a widening divide over when to begin cutting interest rates, with Governor Christopher Waller pushing for a reduction as soon as next month — while Richmond Fed President Thomas Barkin is warning that tariff-driven inflation risks still loom large.
“I think we’re in the position that we could do this as early as July,” Waller told CNBC’s “Squawk Box” on Friday. “That would be my view, whether the committee would go along with it or not.”
Waller argued that inflation has cooled enough to justify easing monetary policy and downplayed concerns over Trump-era tariffs. “It should be a one-off level effect and not cause persistent inflation,” he said.
Barkin took a more cautious tone, telling Reuters: “I don’t think the data gives us any rush to cut…I am very conscious that we’ve not been at our inflation target for four years.”
He pointed to ongoing uncertainty over trade policy, telling Reuters: “There will be some inflationary impact.
