Waller Backs More Fed Rate Hikes to Restore 2% Inflation Goal

2 articles · Updated · Yahoo Finance · Oct 8

Chris Waller said the Fed will likely need additional rate hikes if incoming data match expectations, arguing policy should stay focused on inflation in the near term.
August inflation came in hot before the September FOMC meeting, and Waller said recent data still show inflation is too high while the labor market remains stable.
Oil could stay elevated through 2027, AI spending is lifting high-tech consumer prices, and trade conflicts risk new tariffs — factors Waller said are reinforcing persistent inflation.
Waller said the hikes need not come at consecutive meetings, signaling flexibility on timing even as he expects stronger second-half economic activity and little risk of a sharp slowdown.
He also urged a middle-ground communications approach: signaling the amount of tightening over a period without precommitting to the exact pace or size of each move.