Waller, U.S. Fed Director, Reiterates Call for July Rate Cut... Emphasizes No Political Connection

[Financial News]  Christopher Waller, U.S. Federal Reserve Director, reiterated the call for a rate cut while emphasizing that it is unrelated to politics.
On the 10th (local time), Yahoo Finance reported that Waller emphasized the need to consider a rate cut at the Federal Reserve's monetary policy meeting scheduled for the end of this month, stating that the inflation that may arise from tariff imposition would be temporary.
At an event hosted by the Federal Reserve Bank of Dallas, Waller said, “I think the current monetary policy is too tight,” urging a review for a rate cut this month, and stated, “This is unrelated to politics.”
He particularly emphasized the rate cut, noting that the inflation caused by tariffs has not yet become prominent, showing a similar perspective to that of Donald Trump, the U.S. President.
Waller was appointed as a Fed director during the first term of the Trump administration and is known to be one of the candidates considered to succeed the current Fed Chairman Jerome Powell, whose term expires in May next year.

At last month's Federal Open Market Committee (FOMC) meeting, it was revealed in the minutes released a day earlier that some Fed officials do not expect a rate cut this year.
Additionally, some have indicated support for a rate cut at the meeting scheduled for the 29th-30th.
Among senior Fed officials, there is a divided view on the impact of the Trump administration's tariff imposition on the Fed's benchmark interest rate, questioning the legitimacy of the tariffs.

Fed Chairman Powell and some officials believe that monetary policy should be cautiously continued, considering the resilience of the U.S. economy.
Alberto Musalem, President of the Federal Reserve Bank of St. Louis, has not yet determined whether the inflation that may result from tariff imposition will be temporary or long-term.
He said, “It will take time to assess how much burden tariffs will place on consumers.”
Musalem expects that the results of tariff imposition will appear in prices between summer and September, predicting the direction of inflation through this.
He also sees that it may take longer to assess.
Additionally, he warned against the rise in prices of non-imported products due to tariffs on intermediate materials like steel, aluminum, and copper, and the prolonged duration of inflation.
Mary Daly, President of the Federal Reserve Bank of San Francisco, holds a somewhat 'dovish' stance, but not as much as Director Waller.
President Daly expects the resumption of rate cuts in September, predicting two cuts within this year.
Daly stated that the impact of tariffs would be temporary, but there is also a possibility of a delayed appearance, and there is a sense that companies are adapting well and may not raise product prices.

jjyoon@fnnews.com Yoon Jae-jun Reporter