Member of the Fed Board and possible replacement of Powell says that the bank should reduce the rate this month because the growth is slowing down “significantly”

Christopher Waller, a member of the Fed Board of Directors, said In a speech In New York City, the economy shows signs of weakening, with the deceleration of consumer spending and the cooling of labor profits. The Fed should reduce the costs of loans to underpin spending and growth before the labor market weakens even more, Waller said.

“The economy is still growing, but its impulse has slowed down significantly,” he said, added that the deceleration threatens the objective of the maximum employment.

At the same time, it is likely that the radical tariffs of President Donald Trump only elevate inflation temporarily and are not a reason to postpone the target cuts, Waller said.

“Tariffs have increased and will continue to increase, inflation a little above the 2% target (Fed) this year,” Waller said, but political leaders should “look through tariff effects and focus on underlying inflation,” which said it is close to the 2% target.

Waller has been mentioned as a potential replacement for Powell when the current term of the president expires in May 2026, or perhaps before if Trump takes the unprecedented step to fire Powell. Trump has threatened to say goodbye to Powell this year, but on Wednesday he said it was “very unlikely” to take that step.

For its part, Powell has said that Fed wants to see the impact of prices and economy duties before making any movement.

Waller, appointed by Trump, said previously that he would support a rate cut in July. Michelle Bowman, also designated by Trump, has also spoken in favor of a cut.

The minutes to the meeting from June 17 to 18 of the Fed said that only “a couple” of the 19 members of the Interest Configuration Committee of the Central Bank supported a cut in July.

Other participants, the minutes did not say how many, they said that the Fed should keep the rates without changes this year, since inflation remains above 2%. Consumer prices went up 2.7% in June For a year, the fastest rate in four months.

Other potential replacements for Powell have also publicly expressed their support for the reduction rates soon, including Kevin Warsh, a former member of the Fed Board that resigned in 2011. Warsh, currently a member of the Hoover institution, said Fox Morning Morning Morning “in” Fox Morning “of Fox at the beginning of this week that supported the target cuts.

“The president’s right to be frustrated with Jay Powell and the Federal Reserve,” Warsh said.