Top Fed official backs December interest rate hike
Fed governor Christopher Waller said the US central bank must act swiftly and forcefully to address inflation.
Federal Reserve Governor Christopher Waller has expressed support for a potential interest rate hike in December, despite calls from President Donald Trump for lower borrowing costs. During a speech in London, Waller emphasized the need for swift action to tackle high inflation, stating that monetary policy will be required sooner rather than later to bring inflation back to a 2% target in the medium term.
He indicated that he would consider a 0.5 percentage point increase in interest rates based on the October Consumer Price Index (CPI) data, which is expected to show further inflationary pressures due to factors such as surging gasoline prices resulting from the US-Iran war. Waller also cautioned that a smaller rate hike of just 25 basis points could undermine the Fed's credibility, suggesting a stronger 50 basis point increase may be warranted.
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