Washington, November 19:
Federal Reserve Governor Christopher Waller said Tuesday that signs of a weakening labor market could justify a rate cut at the December policy meeting, adding that companies across several industries are openly discussing layoffs as demand slows and automation gains speed.
Waller noted that many firms are preparing workforce reductions to offset expected tariff pressures under a Trump administration and to reinvest in productivity-driven technologies, including AI. His remarks coincided with the release of delayed economic figures that were held up during the recent government shutdown. Early data shows a patchy post-shutdown rebound, reinforcing concerns about slowing hiring momentum.
Markets responded favorably, with equities rising on expectations that the Fed may begin easing sooner to support growth. However, divisions remain inside the central bank over how quickly to lower rates without risking a resurgence in inflation. Some officials argue for a cautious approach, even as job-market indicators weaken.
Investors are now waiting for upcoming retail and manufacturing reports to gauge where the economy is heading. Waller’s comments reflect broader unease about how businesses and workers will navigate the transition toward automation during a period of global policy uncertainty.
