Governor Christopher Waller Says Fed Could Cut Interest Rates As Soon As July

Federal Reserve Governor Christopher Waller said the central bank can lower interest rates as soon as next month.

“We could do this as early as July,” Waller said Friday in an interview on CNBC. The Federal Open Market Committee next meets July 29-30 in Washington.

“I think we’ve got room to bring it down, and then we can kind of see what happens with inflation,” he said, adding the central bank could pause cuts if needed.

Waller’s comments follow the decision by Fed policymakers on Wednesday to keep interest rates on hold. Officials also continued to signal their expectation for two rate cuts before the end of 2025, according to their median projection.

Seven policymakers signaled they expect no cuts this year, pointing to an apparent split in the committee.