Fed Governor Waller: Fed should start cutting at September meeting

Monetary Policy Outlook - Fed Governor Waller advocated for rate cuts, suggesting the Fed might need to go further to reach neutral [2] - Waller's call for cuts is based on the idea that tariffs are temporary and don't create wider inflation [3] - St Louis Fed President expressed concerns about downside risks to the labor market, indicating flexibility [4] - Atlanta Fed President Bostic maintains a baseline of one rate cut this year but could move to September if the job market slows faster [5] - The market shows a 95% probability of a September rate cut and around a 51% probability of an October cut [6] - The market anticipates the Fed moving towards neutral, with the December 26 Fed funds contract around 3% [8] Market Expectations - The market views a September rate cut as highly likely [7] - The focus is shifting to whether there will be additional rate cuts in the remaining meetings this year [7] - The market expects the Fed to move towards a neutral stance by the end of next year [9] Fed Governance - Fed officials declined to comment on the situation surrounding Fed Governor Lisa Cook [6] - Arguments are being made that potential issues with Lisa Cook's disclosures were known when she submitted her documents [12] - The administration seeks summary judgment on Lisa Cook's case, while her attorney requests a review of relevant documents and interviews [13][14]