Fed’s Waller: March Rate Cut Uncertain Amid Robust US Jobs Report

WASHINGTON – On Monday, Christopher Waller, a governor at the Federal Reserve, indicated that the robust job growth observed in January might allow the central bank to forgo a rate reduction at its upcoming March meeting. Such a move could potentially invite further criticism from President Donald Trump.

Waller noted that the unexpected addition of 130,000 jobs last month could be an isolated event. He emphasized the need for another strong employment report in the coming month to confirm any significant improvement in the job market, which he remarked had been notably weak in 2025.

Waller’s cautious approach marks a departure from his stance in January when he was one of two Fed governors who opposed the decision to maintain the central bank’s key rate, following three rate cuts at the close of the previous year. The rate was left at approximately 3.6%.

Waller suggested that if February mirrors January’s job performance, indicating reduced risks to the labor market, it might be sensible to keep the Fed’s short-term rate unchanged while monitoring ongoing advancements in inflation and labor market robustness. These comments were made during a speech at the National Association for Business Economists conference.

Conversely, Waller warned, “If the positive labor market news from January is revised or fails to hold in February, then a rate cut should be considered at the March meeting.”

“As things stand today, I rate these two possible outcomes as close to a coin flip,” Waller added.

Trump attacked the Fed on Friday after the government reported that the economy grew more slowly in the final three months of last year than in the summer and fall. Growth slowed to an annual rate of 1.4%, down from 4.4% in the fall.

“LOWER INTEREST RATES,” Trump posted. “’Two Late’ Powell is the WORST!!” he added, misspelling his usual nickname for Chair Jerome Powell, who he has referred to previously as “Too Late.”