neutral
Recently
Labor market cracks deepen, strengthening Fed’s case for gentle policy easing
Waller points to hidden labor weakness as justification for gradual policy easing by the Fed.
Federal Reserve Governor Christopher Waller said data outside the official employment report indicate persistent labor market softness. He argued this disconnect between strong GDP and weak hiring strengthens the case for gradual quarter-point rate cuts. Waller cautioned that misreading the signals could lead to policy errors, urging patience and balance in upcoming decisions. His remarks come amid growing anticipation of further easing this year. Observers see the labor-growth divergence as a key pivot point for rate guidance ahead.