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Fed Governor Waller Backs 25-Basis-Point December Hike, Says 50 Possible If Core CPI Runs Hot
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Federal Reserve Governor Christopher Waller said on November 10 that the Fed will need to tighten policy further, citing excessively high U.S. inflation and a poor September inflation reading. He expressed particular concern that price increases are broadening. Waller said he would support a 25 basis point rate hike in December even if October CPI improves from September. However, he added that if October core CPI rises by about 0.3% or more, the Fed may need to raise rates by 50 basis points in December. The remarks set a data-dependent condition for the size of the next rate move.
Source report
November 10 — Federal Reserve Governor Christopher Waller said in a speech that the Fed will need to tighten policy further. U.S. inflation remains too high, and the September inflation data was disappointing. He is particularly concerned about the broad-based nature of price increases. Even if October CPI improves from September, he will still support a 25 basis point rate hike in December. If October core CPI rises by around 0.3% or more, the Fed may need to raise rates by 50 basis points in December.
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domesticNeutral / independent
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Waller Leans Toward 25bp December Fed Hike, Open to 50bp If Inflation Runs Hot