Key Takeaways
- Federal Reserve Governor Christopher Waller has indicated that all available data suggest a December interest rate cut and expressed confidence in inflation returning to target.
- Waller also stated his willingness to accept the position of Fed Chair if asked by the President.
- AbbVie (ABBV) reported strong third-quarter earnings, raising its annual profit forecast, but is facing pressure from Donald Trump for deeper Medicare drug price cuts.
- The Federal Reserve announced the weekly availability of its H.8 release detailing assets and liabilities of commercial banks.
- Waller affirmed the Fed's access to substantial data despite a recent government shutdown, while the U.S. House of Representatives is scheduled to remain out of session next week.
Waller Hints at December Rate Cut and Future Leadership
Federal Reserve Governor Christopher Waller has signaled a potential December interest rate cut, emphasizing a data-driven approach to monetary policy. Waller stated that "all the data are saying we should cut rates in December," suggesting a proactive stance by the central bank in response to economic indicators. This comes as Waller also expressed optimism that "all of our forecasts have inflation returning to target".
In a significant political commentary, Waller indicated his readiness to take on a larger role, stating, "if President asks me to be Fed Chair, I'll say yes." This remark adds a layer of speculation to future leadership at the central bank.
Inflation Outlook and Data Availability
Waller reiterated the Fed's commitment to basing policy decisions on incoming economic information, asserting that the central bank "should proceed on policy based on what data is telling us". Despite concerns about disruptions, Waller confirmed that the Fed possesses "a lot of data, despite govt shutdown," during a Fox Business Network interview, underscoring the institution's capacity to monitor economic conditions continuously.
Separately, the Federal Reserve announced the "Now available: Weekly data on the H.8 release, Assets and Liabilities of Commercial Banks in the United States," providing crucial insights into the banking sector's health.
Political Developments: House and Drug Prices
In political news, the U.S. House of Representatives will be out of session again next week, potentially impacting legislative progress.
Meanwhile, pharmaceutical giant AbbVie (ABBV) is navigating political headwinds. The company reported that Donald Trump is "pressing for larger Medicare drug price cuts". This pressure comes even as AbbVie lifted its annual profit forecast for 2025, driven by strong sales of its newer immunology drugs, Skyrizi and Rinvoq, which are offsetting declining sales of its blockbuster arthritis treatment, Humira. AbbVie now expects adjusted annual profit per share between $10.61 and $10.65, an increase from previous expectations of $10.38 to $10.58, with quarterly sales reaching $15.78 billion, surpassing analyst estimates.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.