Fed Governor Waller Signals Caution on Rate Hikes


Summary: Fed Governor Christopher Waller expresses the need to wait for further data before deciding on rate hikes.

Fed Governor Christopher Waller has indicated that the Federal Reserve will hold off on raising interest rates at its next meeting, but may consider doing so in the future. Waller stated that he wants to assess if the U.S. economy continues to be strong or weakens in response to previous rate increases. He added that if the economy softens, there would be more room to delay further rate hikes. However, if the economy shows underlying strength and inflation stabilizes or increases, further tightening of monetary policy may be necessary. Waller emphasized that recent data has been positive but acknowledged that it cannot be sustained indefinitely. He highlighted the importance of balancing economic evolution and inflation management. Waller’s remarks came during a seminar in London and reflect his hawkish stance within the Federal Reserve.

Tags: Federal Reserve, rate hikes, monetary policy, economic strength, inflation management