Federal Reserve Board Governor Christopher Waller discussed the possibility of a significant interest rate hike in December due to ongoing inflation concerns. He stated that if inflation remained high, the central bank might consider raising rates by 0.5 percentage points, double the usual increase. This statement came before a government report reaffirmed persistent inflation issues in October.
While speaking in London prior to the report’s release, Waller indicated a preference for a quarter-point increase at the December Federal Reserve meeting. However, he emphasized that if core prices, excluding food and energy, rose 0.3 percent or more in October, as in previous months, a larger hike would be necessary. Waller cautioned that limiting the rate hike could undermine the Fed’s credibility.
The Bureau of Labor Statistics later reported that core prices increased by 0.3 percent, and consumer prices climbed 0.4 percent from September, surpassing economists’ expectations. Despite a slight easing, inflation levels remained high. This data supports the Fed’s potential decision to raise rates to cool the economy by making borrowing more expensive.
Waller, an appointee of President Donald Trump, had advocated for interest rate cuts last year, even dissenting for a cut in January.
US Stocks Surge After Democrats Secure Congress Control 
Wall Street Reacts to Midterm Election Results 
Gold’s Challenging Year Amid Rising Interest Rates and Market Shifts 
Expert Opinions on Nasdaq 100 Correction 
Wall Street Sees Relief Amid Oil Price Drop and Resilient Stocks 
Maximize Savings with New Interest Rate Hikes