Waller anticipates that this initial rate cut will not be the last, hinting at a series of reductions aimed at achieving inflation and employment goals.

Federal Reserve Governor Christopher Waller has expressed support for an interest rate cut at the upcoming Federal Open Market Committee meeting scheduled for mid-September.

He indicated that recent economic data reinforces the need for action, suggesting readiness to lower interest rates.

He emphasized that if the labor market deteriorates more quickly than expected, the Fed should consider larger cuts to ensure a soft landing for the economy.

Waller noted a shift in the balance of risks towards the downside for the Fed's employment goals, given the progress made in controlling inflation.

He mentioned that refinancing a mortgage could be beneficial, as lower rates may lead to reduced monthly payments and overall interest costs.

Chairman Jerome Powell previously indicated a strong likelihood of rate cuts in September, contingent on economic data confirming a 2% inflation target.

Historically, small-cap value stocks have outperformed other market segments over the long term and could benefit significantly from rate cuts.

A looser monetary policy is generally seen as favorable for speculative assets like cryptocurrencies, as lower interest rates may drive investors towards riskier investments.

While market futures indicate a growing likelihood of a quarter percentage point reduction this month, there are expectations for more significant cuts later in the year.

Stock markets reacted cautiously to Waller's statements, reflecting investor uncertainty regarding the implications of potential rate cuts.

Waller's comments come as the Federal Reserve closely monitors economic indicators to determine appropriate monetary policy adjustments.