Federal Reserve governor Christopher Waller said on Friday that the U.S. private sector is not doing as well as everybody thinks it is, noting that most of last month’s job gains came from the public sector. He observed that business executives are largely in a holding pattern, neither hiring nor firing.
Waller also stated he would dissent if the Fed's policymakers vote to keep rates steady at the July meeting, emphasising that internal disagreement reflects a healthy, economics-based debate, not politics. He recalled his earlier dissent on the balance sheet slowdown, suggesting a similar stance now.
The Fed's governor noted it's probably not critical if the Fed waits six more weeks to cut rates, but also no real reason to hold off. Waller added that he believes the inflationary impact of tariffs will be temporary and sees no sign that inflation expectations are on the rise.
When asked about potentially serving as Fed Chairman, Waller said he would accept if asked, though he noted that President Trump hasn't approached him. He underscored the importance of appointing a Fed chair who has credibility with the markets.