‘NOT PARTICULARLY WORRIED': Fed gov downplays inflation fears, backs rate cut

Core Viewpoint - Federal Reserve Governor Christopher Waller advocates for a quarter-point rate cut at the upcoming policy meeting, citing a weak labor market and manageable inflation as key factors [1][3][4]. Economic Indicators - The labor market is showing signs of continued weakness, with the latest jobs report indicating only 119,000 jobs added in September, which is expected to be revised down by approximately 50,000 to 60,000 [6][7]. - Inflation is not perceived as a significant concern moving forward, with expectations that it will begin to decline. Current inflation is estimated to be around 2.4% to 2.5% [9][10]. Future Outlook - The approach to monetary policy may become more cautious and data-dependent starting in January, as a significant amount of economic data will be released [5][6]. - Waller does not foresee a turnaround in the labor market in the next 6 to 8 weeks, indicating a continued focus on labor market conditions in future policy decisions [6][8]. Communication and Transparency - Waller emphasizes the importance of transparency and accountability in monetary policy, suggesting that press conferences after every meeting should continue to communicate decisions to the public and financial markets [12][13].