At the September meeting, the Fed Governor Waller supports lowering interest rates.

• At our upcoming meeting, I propose lowering the target range for the federal funds rate due to the progress made on inflation and moderation in the labor market, as stated by Fed Governor Christopher Waller.
• The nonfarm payrolls report on Friday was weaker than expected, which added to the belief that the pace of hiring is slowing down.

Christopher Waller, a Federal Reserve Governor, supported an interest rate cut at the upcoming central bank policy meeting in less than two weeks, emphasizing the need to aid a weakening jobs market.

In light of the advancements made in controlling inflation and regulating the job market, I propose that we reduce the federal funds rate target range at our impending conference, as stated by Waller in his remarks to the Council on Foreign Relations in New York.

The Federal Open Market Committee meeting on September 17-18 is likely to ease policy, as indicated by recent advocacy from other policymakers. Waller echoed the language used by Fed Chair Jerome Powell in late August, stating that "the time has come" for changes to monetary policy.

The weaker-than-expected nonfarm payrolls report on Friday added to the belief that the pace of hiring is slowing down, as the Labor Department reported job growth of 142,000, which was higher than July but still below the 161,000 Dow Jones forecast.

Waller did not specify the extent or frequency of rate cuts, but he acknowledged the possibility of aggressive action to keep the labor market afloat as inflation approaches the central bank's 2% target.

If the labor market worsens faster than anticipated, the Fed should respond with larger reductions, which would increase the chances of a "soft landing," according to him.

He stated that he does not anticipate the initial reduction to be the final one. Given the proximity of inflation and employment to our long-term objectives and the moderating labor market, it is likely that a sequence of reductions will be necessary.

"Waller stated that the future decisions on the pace of rate cuts and the total reduction in the policy rate are uncertain. He expressed that he is open to considering larger cuts if the data suggests the need for them."

The report caused the futures market to shift towards a higher probability of a quarter-point rate reduction this month. However, it also suggested that more significant cuts may occur later in the year, with a potential half-point reduction in November and another in December, as indicated by the CME Group's FedWatch measure.