Fed Governor Waller: Further rate hikes if economic data meets expectations, but no need for consecutive meetings

Odaily News: Federal Reserve Governor Waller stated that if economic data meets expectations, the Fed is expected to raise rates further, but there is no need for consecutive rate hikes at back-to-back meetings, and hikes should be implemented over an acceptable timeframe.

Waller noted that U.S. inflation has remained above the Fed's target for about five and a half years, and factors such as AI infrastructure buildout and ongoing energy shocks continue to exert inflationary pressure, potentially putting inflation expectations at risk. Meanwhile, the labor market remained solid in September, and although the number of new jobs declined, there is evidence that the U.S. economy is strengthening in the second half of 2026.

Waller also said the Fed can avoid making explicit commitments to forward guidance while improving communication by signaling potential policy options to the market. (Jinshi)