--- title: "Waller, who is vying for the position of Federal Reserve Chair, calls for caution after the rate cut in October" type: "News" locale: "zh-CN" url: "https://longbridge.com/zh-CN/news/261477659.md" description: "Federal Reserve Board Governor Chris Waller supports a 25 basis point rate cut at the end of October but suggests a cautious approach thereafter. He pointed out the contradiction between current economic growth and a weak labor market, indicating the need for careful policy adjustments to avoid mistakes. Meanwhile, another governor, Stephen Mihm, called for a 50 basis point rate cut, emphasizing the risks to the economic outlook. Waller's shift in position reflects internal divisions within the Federal Reserve regarding rate cuts" datetime: "2025-10-16T15:15:40.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/261477659.md) - [en](https://longbridge.com/en/news/261477659.md) - [zh-HK](https://longbridge.com/zh-HK/news/261477659.md) --- > 支持的语言: [English](https://longbridge.com/en/news/261477659.md) | [繁體中文](https://longbridge.com/zh-HK/news/261477659.md) # Waller, who is vying for the position of Federal Reserve Chair, calls for caution after the rate cut in October Chris Waller, a member of the Board of Governors of the Federal Reserve System (Fed), stated on Thursday that he supports a 25 basis point rate cut at the end of this month, but believes that cautious action should be taken thereafter. Waller is one of the leading candidates to succeed Fed Chairman Jerome Powell in 2026, and his latest remarks seem to indicate that he may prefer to maintain stable interest rates to observe the subsequent trends in the economy and labor market. Waller noted that current data presents a contradictory situation between "strong economic growth" and "weak labor market." "This contradiction will inevitably resolve in one direction — either economic growth slows to match the weak labor market, or the labor market recovers to align with strong economic growth," Waller said in a speech in New York titled "Rate Cut Decisions in the Face of Contradictory Data." "Since we cannot predict which direction the data will ultimately break this contradiction, we must act cautiously when adjusting policy rates to ensure we do not make costly and difficult-to-correct mistakes," Waller added. As Waller proposed a cautious stance, fellow Fed Governor Stephen Miran, also appointed by the Trump administration, reiterated on Thursday his call for a 50 basis point rate cut at the next policy meeting scheduled for October 27-28, citing the renewed deterioration of trade tensions as a risk to the economic outlook. Miran is not concerned about inflation issues caused by tariffs; he hopes to adjust interest rates to a "neutral level" — a rate level that neither stimulates nor suppresses economic growth. The latest signs of division within the Fed come as Waller slightly moderates his previous stance on rate cuts. Since this summer, Waller has been one of the core members within the Fed advocating for a "dovish" stance (favoring easing policies). Meanwhile, Waller is being considered for the next Fed chair position. Currently, Treasury Secretary Scott Bessent is leading the search for the chair candidate, and Waller has made it onto a shortlist of five individuals. Bessent will submit the final recommendations to Trump after Thanksgiving. The market has viewed the Fed's next meeting and the December meeting's rate cuts as a "done deal," but Waller's remarks also suggest that whether a rate cut occurs in December is not absolute — it ultimately depends on the data trends in the coming weeks to months. The U.S. government shutdown complicates the situation further: Fed officials have not yet received the September non-farm payroll report and retail sales data, and the Consumer Price Index (CPI) inflation data has also been delayed until next week. Waller is currently relying on his network to assess the labor market and inflation conditions. According to feedback from employers, the labor market further weakened last month; however, retailers reported that consumer spending remains robust. The Beige Book released by the Fed on Wednesday also indicated that the labor market is performing weakly The report points out that the demand for labor from enterprises is weakening, with an increasing number of employers stating that due to soft demand and rising economic uncertainty, and in some cases due to increased investment in artificial intelligence, they are reducing their workforce through layoffs and natural attrition (not filling vacant positions). At the same time, labor supply is tight across multiple industries, from hospitality to agriculture, construction, and manufacturing, due to adjustments in immigration policies, with a decrease in the number of immigrants leading to labor shortages in related fields. Regarding inflation, Waller noted that the current "core goods inflation rate" (which excludes volatile items such as energy and food) is 0.5 percentage points above normal levels. Research by the Federal Reserve Board staff and other institutions indicates that this phenomenon is mainly due to the impact of tariffs. He stated that the impact of tariffs on inflation is expected to gradually weaken in the coming months, and what really needs to be focused on when formulating interest rate policy is the inflation level after excluding tariff factors. Waller reiterated that he is more concerned about the labor market than inflation—although he believes that tariffs will lead to a permanent increase in price levels, this will only trigger "temporary inflation," meaning a one-time increase in prices rather than a sustained rise. "Given that market-based long-term inflation expectation indicators are clearly in a stable range, and the weak labor market is suppressing wage increase demands, I judge that inflation is moving towards the sustained target level of 2%, which in itself should not be an obstacle to adjusting monetary policy to a more neutral level," Waller said. Looking ahead to the policy direction after the Federal Reserve meeting at the end of this month, Waller stated that if GDP growth remains stable or accelerates, and the labor market recovers, this may mean that the pace of interest rate cuts should be slower than expected. "I want to avoid the situation where acting too quickly reignites inflationary pressures, thereby wasting the significant progress we have made in suppressing inflation," he said ## 相关资讯与研究 - [Trump weighs broader cabinet shake-up as Iran war pressure grows](https://longbridge.com/zh-CN/news/281681817.md) - [Omeros Turns Corner With Novo Deal, YARTEMLEA Launch](https://longbridge.com/zh-CN/news/281666535.md) - [Kepler Capital Sticks to Its Buy Rating for Banco Comercial Portugues (0RJN)](https://longbridge.com/zh-CN/news/281671078.md) - [ARYZTA AG (0MFY) was upgraded to a Hold Rating at Kepler Capital](https://longbridge.com/zh-CN/news/281671830.md) - [Easter candy prices surge again, leaving buyers with less](https://longbridge.com/zh-CN/news/281664015.md)