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 indicated a likelihood of a December interest rate hike, despite calls for lower borrowing costs from President Donald Trump. Speaking in London, Waller emphasized the need for swift action to tackle high inflation, stating that monetary policy was required to bring inflation back to a 2% target in the medium term.
He suggested a potential 0.5 percentage point increase if October's CPI data shows continued upward pressure. This statement supports the possibility of the Federal Open Market Committee raising rates for the second time in three meetings, which could negatively impact Trump's policies. Waller criticized September's inflation data, describing it as "bad" with no positive aspects.
He pointed to AI development and energy price pressures as factors contributing to inflation, suggesting a stronger policy move might be needed even if October's inflation rate improves.
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