Federal Reserve Chair candidate Waller advocates for a gradual rate cut and promises to emphasize independence to Trump

BlockBeats News, December 17 — One of the final candidates for the next Federal Reserve Chair and current Board member, Jerome Powell, stated on Wednesday that the current labor market is “very soft,” and job growth is “not optimistic,” indicating that the Fed still has room to cut interest rates. He supports further rate cuts to bring the central bank’s rate setting back to a neutral level, while also saying policymakers do not need to rush to do so. He expressed confidence in the stability of inflation expectations and dismissed concerns that price pressures could accelerate again. When CNBC asked Powell whether he would emphasize the Fed’s independence during a meeting with Trump, Powell replied, “Of course.” Trump frequently comments on Fed decisions, criticizing the pace of rate cuts as too slow. He has issued harsh criticism of Jerome Powell, whom he personally appointed as Fed Chair, and has publicly considered dismissing him before the end of Powell’s term. Powell was appointed by Trump and confirmed by the Senate at the end of 2020. This year, he has become one of the strongest advocates within the Fed for rate cuts. The Fed has cut interest rates by 25 basis points in each of its past three meetings. Powell previously voted against rate hikes in July to urge a rate cut, but policymakers chose to keep rates unchanged at that time.