Fed can address job market weakness with normal-sized rate cuts, Waller says

By Howard Schneider

Summary:

– Fed Governor Christopher Waller cites private data showing a weakening labor market .

– Waller advocates quarter-point interest rate cuts and cautious policy adjustments.

– Fed’s next meeting is Oct. 28-29, with markets expecting gradual reductions.

WASHINGTON — Fed eral Reserve Governor Christopher Waller said on Friday that private data shows the job market remains weak and buttresses the case for further interest rate cuts , but added the U.S. central bank need only move in “cautious” quarter-percentage-point steps as it evaluates the economy .

The U.S. job s report for September has been delayed by the ongoing fed eral government shutdown , but Waller said that private data reports, like the recent one from pay