Christopher Waller, a governor of the U.S. Federal Reserve. Reuters=Yonhap News. 

Christopher Waller, a current Fed governor who is among the candidates for the next chairman of the U.S. central bank, the Federal Reserve (Fed), said on the 3rd (local time) that the Fed should move to cut interest rates at its monetary policy meeting this month and anticipates multiple rate cuts in the coming months.

In an interview with CNBC on the same day, Governor Waller said, "The labor market deteriorates very quickly once it starts to deteriorate," adding, "Therefore, I think we need to start cutting rates at the next meeting."

The Fed will hold a Federal Open Market Committee (FOMC) meeting on the 16th-17th to decide on the benchmark interest rate.

Governor Waller indicated his stance that multiple rate cuts are necessary in the coming months, noting that the current U.S. benchmark rate of 4.25-4.50% is about 1.0-1.50 percentage points higher than the neutral rate.

The neutral rate refers to the real interest rate level that can maximize employment without increasing inflation.

Governor Waller stated, "We are likely to see multiple rate cuts over the next three to six months," and added, "Whether rate cut decisions will be made at every meeting will depend on future economic indicators."

This is interpreted to mean that at least a 1 percentage point rate cut is needed, but it is not necessarily required to make a cut decision at every meeting to achieve this.

Governor Waller avoided specific comments regarding President Donald Trump's attempt to dismiss Fed Governor Lisa Cook.

However, he commented, "The independence of the Fed is very important, and despite concerns that people may have, we still believe the Fed is independent."

At the FOMC meeting on July 30, Governor Waller, along with Vice Chair Michelle Bowman, dissented from the majority opinion to keep rates unchanged, advocating for a rate cut. It was the first time in about 30 years, since 1993, that two Fed governors expressed dissenting opinions simultaneously.

Both Governor Waller and Vice Chair Bowman were appointed as Fed governors during President Trump's first term.

Some in Wall Street have speculated that Vice Chair Bowman and Governor Waller are taking a proactive stance on rate cuts due to political considerations, amid ongoing pressure from President Trump for the Fed to lower interest rates.

The Trump administration is reviewing 11 individuals as candidates to succeed Fed Chairman Jerome Powell, whose term ends next year. This list includes Vice Chair Bowman and Governor Waller.

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