Fed's Waller plans to support at least a quarter-point rate hike in December
TLT•TLT•TLT•TLT•Fed Governor Christopher Waller said he would support a 25-basis-point rate hike in December even if October inflation cools. He said a 50-basis-point increase should be considered if core CPI rises 0.3% or more from September.
Waller said he would support a 25-basis-point increase at the Fed's December meeting even if October CPI improves. If core CPI rises 0.3% or more from September, he said a 50-basis-point hike should be considered.
Waller said inflation is too high and he is particularly concerned about the breadth of price increases. More than 70% of core PCE services components rose at least 3% in September, he said. Fed staff analyses suggest producer prices could continue to rise and energy-price pressures could persist well into 2027 if oil prices remain elevated.
Waller said GDP growth may slow in the current quarter but should continue at a solid pace. He described the labor market as solid, with worker demand and supply roughly in balance.
