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US Fed's Waller Signals Further Rate Hikes Amid Persistent Inflation
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News18•09-10-2026, 15:15
US Fed's Waller Signals Further Rate Hikes Amid Persistent Inflation
- •US Federal Reserve Governor Christopher Waller stated that additional interest rate hikes are expected to bring inflation down to the central bank's 2 percent target.
- •Speaking at the Istanbul Economic Forum, Waller noted that the US economy is resilient enough to handle tighter monetary policy.
- •He highlighted persistent price pressures, including high energy prices due to Middle East conflicts, expanding AI infrastructure, and trade uncertainties.
- •Waller clarified that rate hikes do not need to occur at consecutive meetings but should happen within an acceptable timeframe based on incoming economic data.
- •Core personal consumption expenditures inflation stood at 3 percent annually in August, keeping the Fed's primary focus on controlling inflation.
Key Questions Answered
Federal Reserve Governor Christopher Waller indicated that additional rate hikes are driven by persistent inflation remaining above the 2 per cent target, a resilient labor market, elevated energy prices from the Middle East conflict, and the expansion of artificial intelligence infrastructure.
The Federal Open Market Committee raised its benchmark interest rate by 25 basis points in September, bringing it to a range of 3.75 to 4 per cent and ending a nine-month period of unchanged rates.
Based on market prices as of October 7, futures indicate an 85 per cent probability of at least one interest rate hike by the December meeting.
