Christopher Wallner, Chairperson of the Federal Reserve Bank. Photo by: Federal Reserve Bank Photographer
(The Post News) – United States (U.S) firms are in negotiations of layoffs and are in process of planning for a weaker demand and a heightened productivity gain from artificial intelligence (AI). Federal Reserve Bank Governor, Christopher Waller, commented on this issue. He supported the case for further rate cuts during policy disputes at the U.S. central bank. Waller reported that about a month ago, they were in a state of “no-hire, no-fire.”
He confirmed that “no-hire, no-fire” will soon be a thing of the past as these layoffs will soon start happening. He urged the Fed to emphasize more on job market risks. He also called for another quarter-point rate cut approval at the policy meeting in December.
He sparked an argument on inflation. It was based on excluding temporary impacts of tariffs. These were less than half a percentage precisely above the Federal’s 2% target. It should decline further than that. The decline is due to financial stress. As many households are not benefiting from the rise in stock market gains, placing the economy at risk.
Waller has battled for rate cuts for several months on end. He had the support of his colleagues until recently, resulting in deeply split opinions.
Some of the 12 reserve bank presidents suggest that the Fed must stop cutting rates. This is due to inflation remaining a percentage above target. Federal vice-chairperson, Philip Jefferson, on Monday, 17th November 2025 agreed to there being a risk to the job market. Furthermore, suggesting a slow process in with further cuts.
President Donald Trump Gives Guidance
Under the consideration of U.S. President, Donald Trump as a possible chairperson, Waller agreed to the deep divide among policymakers. He declared dissent being a healthy concept in organizations. He also cautioned that thin policy votes undermine the investor’s ability. This affects their capacity to set accurate expectations regarding interest rate paths.
Waller noted that with 12 policymakers voting, if the decision changes from 7 to 5, only one switch is needed. This switch is enough to alter the policy trajectory. This poses as a risk and undermines confidence in the policy path.
Qualitative or Quantitative Data?
The Fed’s policy debate is currently being carried out without official government economic statistics. There has been a delay caused by the 43-day governmental shutdown. Waller argues that difficulties encountered from this have been exaggerated. He claims the Fed knew about their obligation to delay cuts until there is a bit more transparency.
There is data based on the private and public sector that provides a perfectly questionable picture of the U.S economy. Information from sources like payroll processor ADP, state government employee claims are present. Including surveys from organizations like Conference Board and the University of Michigan.
The data is said to confirm the job market nearing stall speed, inclusive of unemployment claims taking a slight height. Layoff numbers have started to increase with no credible evidence of building wage pressures. According to Waller, this is factual enough to buttress the case for another interest rate cut.
Waller suggests he is not worried about the rise in inflation. He is more focused on the labor market after months of weakness. The decline in consumer sentiments and financial stress on families and other major factors contribute to slow economic growth.
He further explains that the restrictive monetary policy is worrisome and weighs heavily on the economy. It affects the lower and middle-class consumers more. The December cut will offer protection against the accelerating weakness in the job market. It will also shift policy to a neutral setting.
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