Key Takeaways
- Federal Reserve Governor Christopher Waller strongly advocates for a 25 basis point interest rate cut at the upcoming December 9-10 FOMC meeting, citing a weak U.S. labor market and slowing economic growth.
- United Airlines (UAL) has fully resumed its regular flight schedule and is operating at full capacity after the Federal Aviation Administration (FAA) lifted flight restrictions imposed during a recent government shutdown.
- BP (BP) has responded to a refined fuels pipeline release east of Everett, Washington, with unaffected sections of the Olympic Pipeline system now restored.
- Former President Donald Trump reiterated his controversial stance on potentially striking Mexico to halt drug flow, stating such action would be "okay with him."
- The Saudi Crown Prince has received a letter from Iran's President, signaling ongoing diplomatic engagement between the two nations ahead of a U.S. visit.
Federal Reserve Governor Christopher Waller made a forceful case on Monday for continuing interest rate cuts, specifically endorsing a quarter-percentage-point reduction at the Federal Open Market Committee's (FOMC) December 9-10 meeting. Waller emphasized that a December rate cut would provide crucial additional insurance for the U.S. labor market, which he described as "weak and near stall speed." He expressed concerns that the current restrictive monetary policy may be weighing on the economy, particularly impacting housing and car affordability, which remain significant challenges and are dampening consumer spending.
Waller noted that U.S. GDP growth has slowed in the second half of 2025, with dour consumer sentiment aligning with firms' reports of slackening demand. Despite these economic headwinds, he stated that inflation expectations remain well anchored and sees no drivers for an acceleration of inflation, considering tariffs as one-time price shocks. Waller asserted that underlying inflation is now close to the Fed's 2% target. He also indicated that it is "unlikely any data — including upcoming jobs report — will change his view that another rate cut is needed," suggesting a firm conviction in his dovish outlook.
In corporate news, United Airlines (UAL) announced that it has resumed its regular flight schedule and is now operating at full capacity. This development follows the Federal Aviation Administration (FAA) lifting flight restrictions that were put in place during the recent U.S. government shutdown, which had caused significant disruptions due to staffing shortages at air traffic control centers. Other major carriers, including American Airlines, Delta, and Southwest, have also been cleared to return to normal operations, signaling a recovery for the aviation sector.
Meanwhile, BP (BP) reported that it is responding to a refined fuels pipeline release located east of Everett, Washington. The company confirmed that unaffected sections of the Olympic Pipeline system have been restored, indicating a partial resolution to the incident.
On the geopolitical front, the Saudi Crown Prince has received a letter from Iran's President ahead of a planned U.S. visit. This exchange highlights ongoing diplomatic efforts and potential for improved relations between the two regional powers.
In U.S. political news, former President Donald Trump made strong remarks regarding Mexico and drug flow. He stated that if the U.S. "had to strike Mexico to stop drug flow that is okay with him and he would be proud to strike drug factories though he is not saying he will." Trump also commented, "Mexico knows where I stand — and I’m not happy with Mexico." These statements echo previous discussions during his administration about potential military actions against Mexican drug cartels.
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.