More interest rate hikes needed, but there is ‘flexibility’ about the pace: Fed’s Waller
Most US central bankers expect another quarter-point hike by the end of the year
Federal Reserve Governor Christopher Waller stated on Thursday that additional interest rate hikes will likely be necessary to bring inflation down to the Fed's 2% target. However, Waller indicated there is "flexibility" regarding the pace of these increases and suggested a potential pause at the upcoming October meeting of the central bank.
In remarks prepared for delivery at a Central Bank of Turkey forum in Istanbul, Waller said, "If the economic data continue to come in as expected, I anticipate additional hikes to support a timelier return of inflation to our 2% goal." He added, "But there is some flexibility about when those hikes will occur. The hikes do not need to come at consecutive meetings, but they should be in place in an acceptable period of time."
Waller's comments align with those of other Fed officials in recent days suggesting they may keep the policy rate steady at its current 3.75% to 4% range during the Oct 27-28 meeting. A rate increase is expected in December if incoming data shows an economy with low unemployment, ongoing growth, and only limited progress in lowering inflation.
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