Fed's Waller leans toward a December rate hike, even if October inflation improves
He said a 50 basis point increase should be considered if October's CPI reading looks like the past two months, and that hiking only a quarter point in that case would put the Fed's credibility at risk. The remarks are his own views, not a Committee decision.
By James Mitchell ·
Why it matters: Waller's conditional support for a half-point December hike is a tighter path than the hold he backed last meeting, though the views are his alone and October CPI was still ahead.
For information only, not investment advice.
Federal Reserve Governor Christopher J. Waller said Tuesday he is leaning toward supporting a 25 basis point increase in the Federal Open Market Committee's policy rate in December, even if October inflation improves.1
If October's consumer price index is similar to the past two months, with core CPI around 0.3 percent or even higher, he said a 50 basis point hike should be considered. "Hiking only 25 basis points would put our credibility at risk, a risk I am not eager to take."1
The London remarks are his own views, not necessarily those of his colleagues. He supported the hold at the last meeting. September PCE inflation rose 0.5 percent on the month and 3.7 percent over 12 months; core PCE rose 0.3 percent in September and 3.1 percent from a year earlier. October CPI was due later Tuesday. The next FOMC meeting is Dec. 8-9.12
Sources
- Speech by Governor Waller on the economic outlook, Federal Reserve Board
- December 2026, Federal Reserve Board
Tags: fed · interest-rates · inflation