The Federal Reserve Board of Governors Waller issued a clear dovish signal: in favor of a rate cut in July.

According to Mars Finance, on June 20, The Federal Reserve Board of Governors member Waller recently stated that he supports considering a drop in the Interest Rate in July, believing that tariffs will not lead to persistent inflation. He indicated that tariffs will be a one-time factor and that the Federal Reserve should not wait until the employment market collapses to drop the Interest Rate. Waller noted that the current employment market is stable but is starting to show some signs, such as a higher unemployment rate among recent graduates. For the past six months, the Federal Reserve has been watching and waiting for the arrival of inflation shocks. Waller believes that the Federal Reserve has room to lower the Interest Rate and then see what happens with inflation. Waller stated that the Federal Reserve may be in a position to drop the Interest Rate as early as July. Before Waller made this statement, the market was betting on only a 14% chance of the Federal Reserve dropping the Interest Rate in July.