Federal Reserve Governor Christopher Waller just told markets something they didn’t necessarily want to hear: the next move on interest rates might not be a cut after all.
In a speech at Auburn University on April 17, 2026, Waller laid out a deliberately ambiguous path forward, stating the Fed’s next rate decision “could be either a hike or a cut.” He also advocated for removing the easing bias language from the Fed’s policy statements, a move that effectively puts rate increases back on the menu.
A governor who changed his mind
During 2025 and into early 2026, Waller was among the more dovish voices on the Federal Open Market Committee. He backed multiple 25 basis point cuts and promoted a neutral rate that could land 50 to 100 basis points lower than current levels.
As recently as March 20, 2026, Waller said he would support rate cuts later in the year if labor market weakness persisted. He advised caution in the near term but kept the door firmly open for easing.
