The Federal Reserve (FED) dovish governor Waller hinted at the possibility of a rate cut in July, but there are still divisions within the FOMC.

On June 20, “The Fed’s Mouthpiece” Nick Timiraos stated that Federal Reserve Governor Waller continues to maintain the most dovish stance among his colleagues on the Federal Open Market Committee (FOMC). Waller recently said, “I completely agree with the notion that we should perhaps start considering cutting the policy interest rate at the next meeting, because we don’t want to wait until the labor market collapses before we start cutting the policy interest rate.”

Waller hinted at the dynamics within the committee—according to current data, there is no support within the FOMC for a rate cut in July. This raises a question: is he laying the groundwork for “raising dissent supporting a rate cut” at the July meeting? Among those hoping to be nominated as the chair of the Federal Reserve, Waller may be the one who has provided the most theoretically profound reasoning for a rate cut so far.