Federal Reserve Governor Christopher Waller stated on Friday that the central bank should proceed with another rate cut at its December meeting, citing persistent risks of a slowing labor market.

During a media interview, Waller emphasized, "Our biggest concern right now is the labor market. We know inflation will come down, so I continue to advocate for a rate cut in December—all the data suggests we should."

His remarks followed pushback from several Fed officials earlier on Friday, who opposed this week's rate cut decision due to lingering inflation risks. The Fed had lowered its benchmark rate by 0.25 percentage points for the second consecutive month on Wednesday, responding to a sharp summer slowdown in the labor market.

Fed Chair Jerome Powell cautioned in a post-meeting press conference that another December rate cut was far from certain.

Waller downplayed concerns that President Trump’s tariff policies could fuel inflation, stating, "If we exclude what we estimate to be temporary tariff effects, inflation—measured by the PCE price index—is around 2.5%. So yes, it’s not at 2%, but it’s not significantly higher either, and we expect it to decline."

Appointed by Trump in 2020, Waller is among five candidates being considered to succeed Powell, whose term expires in May. Earlier this year, Waller was among the first to advocate for rate cuts, arguing tariffs would only cause a one-time price hike and that employment risks should take priority. He dissented against the majority’s decision to hold rates steady in July.

On potentially becoming Fed Chair, Waller said, "If the President needs me, I’ll step up. He asked me once before, and I agreed. If he asks again, I’ll agree again."