Fed's Waller Says Inflation Not a Major Concern Amid Weak Labor Market

(New York=Yonhap Infomax) Jeong Ho Jin – Christopher Waller, a member of the Federal Reserve Board, indicated support for a rate cut in December, stating that inflation is not a significant issue in the current environment of labor market weakness.

In an interview with Fox Business on the 24th (local time), Waller said, "The available data since the September Fed meeting suggest there has been little change," adding, "Inflation is not a major problem when the labor market is weak."

He continued, "I still do not expect the employment market to rebound in the coming weeks," and noted, "There is a high likelihood that the September employment figures will be revised downward, and the fact that these numbers are concentrated in specific sectors is not a good sign."

Waller explained, "There is no empirical evidence that companies are set to embark on large-scale hiring," and assessed, "While inflation has risen somewhat, I expect it to start coming down again." Excluding the effects of tariffs, Waller estimates inflation is around 2.4–2.5%.

This suggests that Waller remains more focused on labor market weakness than on a rebound in inflation, and, as before, supports a rate cut in December.

However, Waller added, "A vast amount of data will be released in January that will show whether another rate cut is appropriate, so it will be a challenging period," emphasizing the need for a meeting-by-meeting approach.

Regarding the process for appointing the next Fed Chair, he said, "About ten days ago, I spoke with Treasury Secretary Scott Besant," and added, "I believe the government is looking for someone with experience who can get the job done."

Since being included among the candidates for the next Fed Chair, Waller has consistently expressed his desire to take on the role.

jhjin@yna.co.kr

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