Waller Says the Federal Reserve’s September Rate Hike Is Supported by Multiple Pieces of Inflation Evidence, with Future Hikes to Depend on the Data

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Waller Says Elevated Inflation Supports the Federal Reserve’s September Rate Hike; Further Hikes May Follow, but They Do Not Need to Occur Consecutively.

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⚡️Federal Reserve Governor Waller: Inflation Data Support the Federal Reserve September Rate Hike Decision, but Consecutive Hikes Are Not Necessary

BlockBeats reported that,October 8, Federal Reserve Governor Waller stated that the Federal Reserve’s September decision to raise rates was the result of accumulating evidence from multiple sources over several months, rather than being driven by a single data point.

Waller recalled that the Federal Reserve 2025 in September to December cut rates consecutively by 75 basis points. However, in 2026 the labor market stabilized, progress on inflation stalled, the conflict in the Middle East drove up energy prices,AI construction drove up technology-related consumer prices, while trade conflicts and new tariffs also created upside pressure.August After inflation data came in above expectations, the Federal Reserve September decided to raise rates.

Waller said the latest data reinforced the assessment of “stable employment and inflation that is too high.”August Core PCE rose 3%year on year, and since spring 2024 inflation has generally been around 2.5%—3.0%, above the 2%target. He emphasized: “At least in the near term, policy will focus on the inflation side of our mandate.” Waller is not particularly concerned that tighter policy will cause a severe slowdown, but he is concerned that accelerating inflation could push up inflation expectations among all parties.

Regarding the future path, Waller indicated that further rate hikes are possible, such as an additional 75 basis points in the future, but he did not commit to a pace or magnitude, emphasizing that these would depend on the data.September The projections show that, among the 18 participants, 16 expect at least one more rate hike this year, while 4 expect two hikes. The market believes that the probability of at least one rate hike before December is 85%, and that by 2027 March the probability of at least two hikes is nearly 80%.

Waller said that if the data develops as expected, further rate hikes are anticipated, but they do not need to occur at consecutive meetings; they only need to be implemented within an acceptable timeframe.

Original link https://m.theblockbeats.info/flash/370780

Key points

Waller said the Federal Reserve’s September decision to raise rates was the result of accumulating evidence from multiple sources over several months, rather than being driven by a single data point.
2026 In the first half of the year, the labor market stabilized, progress on inflation stalled, and the conflict in the Middle East drove up energy prices;AI construction drove up technology-related consumer prices, while trade conflicts and new tariffs created upside pressure.
August Core PCE rose year on year 3%, with core inflation generally around 2.5%—3.0%, above the 2%target.
Waller said that if the data develops as expected, further rate hikes are anticipated, but they do not need to occur at consecutive meetings.
September The projections show that, 18 of the participants, 16 expect at least one more rate hike this year, while 4 expect two rate hikes.
The market believes December the probability of at least one rate hike before 85%is 2027 by March the probability of at least two rate hikes is nearly 80%。

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Waller believes employment is currently relatively stable, but inflation remains above target, so policy will focus more on controlling inflation in the near term. He said further rate hikes may follow, but the timing and magnitude will be determined by the data, and rates will not necessarily be raised at every meeting.

Why it matters to readers

If expectations of further rate hikes intensify, financing costs and market risk appetite may be affected; however, the specific path will still depend on inflation and employment data.

Rate hikes generally mean higher borrowing costs. The key point here is that the Federal Reserve may continue raising rates, but it has not committed to consecutive hikes.

Risks and unknowns

The evidence does not include Waller’s original remarks or an official Federal Reserve link.
The specific timing, magnitude, and pace of future rate hikes remain undetermined.
The accuracy of the market probabilities and projections in the article still requires further verification.

Waller Says the Federal Reserve’s September Rate Hike Is Supported by Multiple Pieces of Inflation Evidence, with Future Hikes to Depend on the Data

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