The Fed's decision to hold its benchmark interest rate steady for a fifth consecutive year was opposed by Board members Christopher Waller and Michelle Bowman. The two members argued that the interest rate should be cut by 25 basis points, highlighting the weakening labor market. In statements released today, Waller and Bowman stated that the Fed's “wait-and-see” approach is overly cautious and could cause unnecessary harm to the labor market. Waller said, “I believe the current cautious stance is overly cautious. Failure to properly balance the risks to the economic outlook could lead to monetary policy becoming unresponsive to developments.” Waller specifically pointed to the stalled private sector employment growth and future data revisions, indicating that downside risks have increased. Similarly, Bowman said, “The vitality of the labor market is weakening and signs of fragility are increasing,” and that the Fed should take bolder steps in interest rate policy. Fed Chair Jerome Powell and other policymakers generally agree that the labor market remains strong and prefer to wait for more data before cutting interest rates. President Donald Trump, however, highlighted the disagreement, saying, “There is a strong disagreement within the Fed Board of Governors, and it will only get worse.” *This is not investment advice.