Federal Reserve Governor Christopher Waller said the U.S. private sector is performing worse than widely believed, warning that headline employment figures mask underlying weakness. In a Bloomberg Television interview on 18 July, Waller said it “wouldn’t take much to tip the labor market,” adding that many business executives report they are neither hiring nor cutting staff, a sign demand for labor has stalled. The cautionary comments come as policymakers assess whether the economy can withstand the Fed’s earlier rate increases or will require a shift in stance to prevent a sharper downturn.