According to the Zhitong Finance APP, Federal Reserve Board of Directors Waller said on Friday that he supports a rate cut at the upcoming central bank policy meeting, and if necessary, he is open to a significant rate cut.

Waller said in a speech prepared for the New York Foreign Relations Committee: 'Given the progress in inflation control and the gradual easing of the labor market, I believe it is time to lower the target range for the federal funds rate at our upcoming meeting.'

While other policymakers have recently advocated for policy relaxation, Waller's remarks are one of the clearest indications. He reiterated the language used by Federal Reserve Chairman Powell at the end of August - 'It's time' to adjust monetary policy.

Waller added, 'The pace of rate cuts and the ultimate amount of cuts are decisions that will need to be made in the future.' He noted that he is open to the scale and pace of rate cuts and said, 'If the data shows the need for larger rate cuts, I would also support them.'

Waller's remarks came after Friday's release of non-farm payroll data, which was lower than expected, further deepening the view of a slowdown in hiring. The Labor Department report showed that there were 142,000 new jobs added in August, higher than July, but still lower than the estimated 161,000 by the Dow Jones.

Waller did not specify how much or how often he believes the Fed should cut rates, but he said that the Fed may need to take more aggressive measures to maintain stability in the labor market while inflation continues to approach the Fed's 2% target.

He emphasized that if the labor market deteriorates faster than expected, the Fed should take larger interest rate cuts. He said that this would "increase the likelihood of achieving a soft landing for the economy." "In addition, I don't believe this rate cut will be the last one. As inflation and employment approach our long-term targets and the labor market gradually eases, a series of rate cuts is expected to be appropriate," Powell added.

After the release of the employment report, the pricing trend in the futures market indicates a greater likelihood of a 25 basis point cut this month. However, CME Group's FedWatch tool also shows that more aggressive measures may be taken later this year, with a 50 basis point cut in November and another rate cut possible in December.

"Fed Whisperer" Nick Timiraos commented on Powell's speech, stating that Powell did not explicitly mention a rate cut of "25" or "50" basis points, but favored starting with a 25 basis point cut, while retaining the option to "adjust" the pace of rate cuts if "new data" indicates a further deterioration.