US Fed governor calls for rate cut in Sept, sees more to come

US Federal Reserve governor Christopher Waller again called for lower interest rates, saying he would support a quarter-percentage point reduction in September and anticipates additional cuts over the next three to six months.

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WASHINGTON - US Federal Reserve governor Christopher Waller again called for lower interest rates, saying he would support a quarter-percentage point reduction in September and anticipates additional cuts over the next three to six months.

"With underlying inflation close to 2 per cent, market-based measures of longer-term inflation expectations firmly anchored and the chances of an undesirable weakening in the labour market increased, proper risk management means the FOMC (Federal Open Market Committee) should be cutting the policy rate now," Mr Waller said in remarks prepared for an event on Aug 28.

Mr Waller, whom the Trump administration is considering as a candidate to replace Mr Jerome Powell as Fed chair in 2026, said he does not currently see the need for an outsized rate cut when the central bank's policy-setting FOMC next meets on Sept 16-17.