MNI BRIEF: Waller Wants Fed To Keep Cutting Cautiously 

The Federal Reserve should keep lowering interest rates in order to prevent possible risks of weaker employment from materializing, Fed Governor Chris Waller said Thursday. 

“I think it’s the right thing to do,” Waller said in an interview on Bloomberg TV. “You don't want to make a mistake, so the way to avoid that is to go cautiously or carefully and do 25, wait, see what happens, and then you can get a better idea of what to do. But if you've already started the process, you're providing initial support for the labor market that you feel is necessary.” (See MNI POLICY: Fed To Keep Cutting Rates Despite Missing Data)

Waller said the Fed is trying to reconcile an apparent disconnect between a seemingly weakening labor market and still quite resilient economic activity. 

“The labor market is weak, growth is on the stronger side which is a bit of a puzzle right now. We don't know which way this is going to break. If the labor market rebounds, there’s less pressure for cutting rates. If growth is coming back down, there's more pressure for cutting rates.”