A statement from Federal Reserve Governor Christopher Waller, is indicating a potential interest rate cut as early as the July 2025 meeting, a shift from the Fed’s cautious stance amid recent economic uncertainty, influenced by Waller’s academic background in economics at Notre Dame and his role since 2020.
This announcement comes amid escalating geopolitical tensions, notably the U.S. military’s recent deployment of fighter jets to the Middle East due to the Israel-Iran conflict reported on June 17, 2025, which could pressure the Fed to adjust monetary policy to stabilize markets.
Historical data from the Federal Reserve shows rate cuts often correlate with economic slowdowns or external shocks, with a 2019 study by the National Bureau of Economic Research suggesting a 0.5% GDP growth drop following such moves, hinting at potential underlying economic concerns driving this decision.
