Fed's Waller Favors December Rate Hike, Eyes Possible Half-Point Move
Fed Governor Waller signals support for a December rate increase and says a larger half-point hike remains on the table depending on inflation data.
Federal Reserve Governor Christopher Waller said he is leaning toward supporting an interest rate increase at the central bank's December policy meeting, adding that a larger-than-usual half-percentage-point increase could be warranted depending on how incoming inflation data develops.
Waller's comments reinforce the Fed's continued hawkish posture as policymakers work to bring down persistent price pressures that have weighed on consumers and businesses across the country. His openness to a 50-basis-point move signals that officials have not ruled out a more aggressive step beyond the standard quarter-point increment.
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The remarks underscore the degree to which the Fed remains data-dependent, with upcoming inflation readings set to play a decisive role in shaping the December decision. A hotter-than-expected print could tip the balance toward the more forceful half-point option, analysts note, while softer figures might keep the committee on a more measured path.
Waller is a voting member of the Federal Open Market Committee, giving his public statements added significance as the December meeting approaches. His willingness to entertain a larger hike reflects ongoing uncertainty about whether prior rate increases have done enough to cool the economy and reduce inflation to the Fed's 2 percent target.
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