Waller Sees More Fed Rate Hikes, With Timing Flexible

Federal Reserve Governor Christopher Waller said he expects additional interest rate increases will be needed to return inflation to the central bank’s 2% target, while stressing that the moves do not have to come at consecutive meetings. In remarks prepared for a Central Bank of Turkey forum in Istanbul on Thursday, October 8, Waller said his outlook depended on economic data continuing as expected. He did not specify when the Fed should next raise rates, leaving open the possibility of a pause at its October 27-28 meeting. The Federal Open Market Committee’s September meeting minutes said most participants considered another increase in the federal funds target range likely to be appropriate by year-end. The minutes did not identify a specific meeting, and said future decisions would depend on incoming information and its implications for the economic outlook and risks. The Fed raised its policy rate by a quarter percentage point in September. Its target range is 3.75% to 4%. Waller did not say how much further rates might need to rise, but argued that additional increases would help bring inflation down more quickly.