Not so fast on rate hikes, some Fed officials say
After Federal Reserve chairman Kevin Warsh's speech in Jackson Hole , the markets penciled in an interest rate hike for the central bank's mid-September meeting. Comments from two influential officials now throw those expectations into question. The big picture: With August jobs and inflation data due out before a policy meeting in two weeks, the decision of whether to tighten policy appears to…
Federal Reserve officials are expressing doubts about the need for rate hikes, casting doubt on expectations for an interest rate increase in the mid-September meeting. Fed Governor Christopher Waller stated that if incoming data over the next few days shows inflation improvements have been fleeting, he is open to maintaining current rates.
Waller, along with other Fed officials, is cautiously considering whether the decision to tighten policy could be on a knife-edge. Fed Chairman Kevin Warsh previously stated that the central bank must be confident that underlying inflation is moving towards its objective at a sufficient speed, but his stance leaves room for a judgment call on whether that bar has been met.
Waller, as vice chair of the Federal Open Market Committee, has traditionally adhered to policy decisions but has recently shown a willingness to dissent, indicating potential internal disagreements within the Fed.
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