Fed’s Waller: More Rate Hikes Needed, but Timing Is Flexible

Federal Reserve Governor Christopher Waller said more interest rate hikes are needed to finish the fight against inflation, but argued the central bank should stay flexible on timing.
Waller’s remarks point to a likely pause at the October 27-28 meeting, with a hike back on the table in December. The current policy rate stands at 3.75 to 4 percent.
The comments reflect a Fed trying to balance two risks: cutting too early and letting inflation rebound, or holding too long and tipping the economy into a downturn.
Markets have been whipsawed by shifting expectations. Bond yields have surged on the view that rates will stay higher for longer, rattling stocks in recent sessions.
Waller is seen as one of the more hawkish voices on the board, so his emphasis on flexibility was noted by investors. It suggests the Fed wants to keep its options open as new data arrives.
The next jobs and inflation reports will be decisive in shaping the December decision.
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