Is there still room for the Federal Reserve to cut interest rates? What does Waller's latest statement reveal

Question

【BlockBeats】Recently, the Federal Reserve’s policy moves have once again become the focus of market attention. One of the candidates for the next Federal Reserve Chair and current board member, Waller, has recently expressed several viewpoints worth noting.

He straightforwardly stated that the current employment market is “very weak.” Based on this assessment, he believes there is room for the Fed to cut interest rates and supports further adjustments to bring rates back to a neutral level. However, he also mentioned that there is no need to rush.

Regarding inflation, Waller appears quite confident—he is optimistic about maintaining stable inflation expectations and dismisses concerns that prices might accelerate again.

Interestingly, when asked whether he would emphasize the independence of the Federal Reserve during a meeting with Trump, Waller did not hesitate to say “Of course.” There is some subtlety behind this—Trump has always been critical of the Fed’s decisions, often saying that the pace of rate cuts is not fast enough, and has even taken a tough stance against the current Chair Powell, whom he personally appointed, and publicly considered replacing Powell before his term ends.

Speaking of Waller himself, he was appointed by Trump and confirmed by the Senate at the end of 2020 to serve on the Federal Reserve Board. This year, he has become one of the most active advocates for rate cuts within the Fed. The Fed has cut interest rates by 25 basis points in its last three meetings. Interestingly, Waller previously voted against rate hikes in July, advocating for a rate cut, but at that time, policymakers chose to hold steady.

This series of actions reflects an internal adjustment within the Fed regarding economic outlooks, which will have a profound impact on the entire financial market, including the performance of crypto assets.

GasFeeTears · Accepted Answer

Waller's rhetoric still sounds quite steady, but honestly, it's just to look good for Trump. No matter how eloquently he talks about independence and such, it all depends on the political climate.

APY_Chaser · Answer

Waller's words are just for listening; when it really comes down to Trump, he still has to compromise. The argument about the Federal Reserve's independence has long been discredited.

gas_fee_therapist · Answer

Is there still room for interest rate cuts? It all depends on how Trump handles it. This guy will definitely put pressure again... As for Waller's independence, I just laugh.

CryptoPunster · Answer

Waller is basically reassuring Trump. The nice way to put it is independence; frankly, it means we should cut when needed and pause when necessary. Don't give reckless commands.

It's hilarious—weak employment and stable inflation—these two conditions being met simultaneously are less likely than me doubling my bets.

There is room for rate cuts, but "no need to rush" is the real truth. The retail investors should stop dreaming about getting rich overnight.

This conversation between Trump and Waller is truly the Fed's version of "Trust me, I'm independent." Believe it or not, I only half believe it.

Again, poor employment and stable inflation—this combo sounds like a prelude to policy reversal later.

Waller is quite interesting—saying there's room for cuts but also telling us not to rush. Are you teaching us how to trade cryptocurrencies?

Every time I see news like this, I think of how retail investors like us follow the Fed's moves just like watching the stock market—after reading, we're even more confused.