Two influential US rate-setters have signalled their support for a rate cut in the coming months, despite opposition from Donald Trump, who says a pre-election shift in borrowing costs would boost President Joe Biden’s chances in November.
Christopher Waller, a Federal Reserve governor, and John Williams, president of the New York Fed, both said on Wednesday that rate cuts from the central bank will soon be appropriate following improved inflation data and fresh signs that the labour market is cooling off.
“While I don’t believe we have reached our final destination, I do believe we are getting closer to the time when a cut in the policy rate is warranted,” Waller said in a speech in Kansas City, Missouri.