Federal Reserve Governor Waller sends clear dovish signal: in favor of cutting interest rates in July According to Jin Shi, Federal Reserve Governor Waller recently stated that he supports the idea that interest rate cuts should be considered in July, believing that tariffs will not lead to sustained inflation. He stated that tariffs will be a one-time factor and the Federal Reserve should not wait until the job market collapses before cutting interest rates. Waller said that currently, the job market is stable, but there are beginning to be some signs, such as high unemployment rates among recent graduates. For six months, the Federal Reserve has been observing and waiting for the arrival of an inflationary shock. Waller believes that the Federal Reserve has room to lower interest rates and then see what happens to inflation. Waller said that the Federal Reserve may have the conditions to cut interest rates as early as July. Prior to Waller's remarks, the market was betting that there was only a 14% chance of the Federal Reserve cutting interest rates in July.