Below zero: Fed governor wouldn’t be surprised at negative job growth number

Federal Reserve governor Christopher Waller said Monday that solid job gains in January could mean the central bank can skip a rate cut at its next meeting in March, a decision that would likely spur further attacks by President Donald Trump.

At the same time, Waller said last month’s pickup in hiring, when employers added a more-than-expected 130,000 jobs, could have been a one-time gain. He said he would need to see a similarly positive report next month to conclude the job market, which he noted was very weak in 2025, is improving.

Waller’s hedging is a notable shift from January, when he was one of the two Fed governors to dissent against the central bank’s decision to hold its key rate steady after three rate cuts at the end of last year. The decision left the Fed’s short-term rate at about 3.6%.

When the Fed reduces its rate, over time it can lead to cheaper borrowing for mortgages, auto loans, and business loans, though those rates are also influenced by financial markets.

Waller also said that the Suprem...