Federal Reserve board member Wall predicts a 25 basis point rate cut in September and expects further cuts in the next three to six months.

Federal Reserve Board Governor Christopher Waller once again called for a rate cut, stating that he would support a 25 basis point cut at the September policy meeting, and expected further cuts in the next three to six months. "With core inflation close to 2%, market-based long-term inflation expectations firmly anchored, and rising risks of weakening labor market conditions, appropriate risk management suggests that the Federal Open Market Committee should lower policy rates now," Waller said in a speech prepared for the Miami Economic Club on Thursday. Waller noted that he currently does not see the need for a significant rate cut at the September policy meeting. However, if the employment data to be released next week "show a significant cooling of the economy and inflation remains under control," his stance may change. "Currently, I expect further rate cuts in the next three to six months, and the pace of rate cuts will depend on subsequent economic data."