Christopher Waller, the Governor of the Federal Reserve, on Monday indicated strong dovish leanings for an additional decrease in interest rates at the Fed’s December 9-10 meeting, given increased worries about the slower U.S. labor market. Waller explained that the decline in hiring and the job gain momentum have deteriorated to a level that outweighs inflation concerns. Speaking in London, Waller said he is “not so concerned” with the reacceleration of inflation, especially when it comes to recent area prices and equilibrium between reductions in tariffs across the board. Waller quickly pivoted to remind that a restrictive monetary policy can exert an outsized impact on lower and middle-income households, and suggested that a reduction of 25-disaster points would be necessary as it would have the balancing effect of “risk management”. This is where Waller’s comments reveal further divides within the Fed, as both he and fellow Gov Stephen Miran are supporting further easing, while several Fed regional presidents–including Collins of the Boston Fed–are arguing that inflation is high enough that further easing would provide a “high bar” to an eventual cut in rates. Vice Chair Philip Jefferson went on record to say we should take “our time”; he should not encourage policymakers to take more aggressive action than the current pace. Waller also dismissed representations that the Fed will be “flying blind” after the recent closure of government data, while emphasizing several private sector observations regarding increased evidence of softened labor demand. For his part in Washington, in December, Waller suggested cuts would help stabilize the economy and facilitate the monetary policy directional move toward a more neutral position, given continued weakening in labor demand.