Federal Reserve Governor Christopher Waller said he would vote for a quarter-percentage-point reduction in the federal funds rate at the Federal Open Market Committee’s 16-17 September meeting and “fully expects” further cuts over the following three to six months. The move, he told the Economic Club of Miami, would begin to pull policy toward an estimated neutral level of about 3%, compared with the current 4.25%–4.50% target range. Waller described the existing stance as “moderately restrictive,” roughly 1.25 to 1.50 percentage points above neutral. He argued that underlying inflation, excluding the temporary effect of tariffs, is running close to the Fed’s 2% goal, while labor-market indicators point to softening demand. Acting sooner, he said, would reduce the risk of a rapid jobs downturn and keep the central bank from falling behind the curve. The governor, who dissented in July in favor of an immediate cut, repeated that a larger move is unnecessary unless the 5 September jobs report reveals a “substantial” deterioration and inflation remains subdued. He nevertheless signaled openness to a half-point reduction if the data weaken sharply. Waller’s remarks, delivered as he emerges as a potential successor to Chair Jerome Powell, bolster market expectations that the Fed will pivot to easing in the autumn. Investors now look to the upcoming labor-market and inflation releases for confirmation of the trajectory he outlined.