Fed Governor Waller sees December hike likely, opens door to possible half-point increase

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1. 4h ago

   Fed Governor Waller sees December rate hike likely, open to half-point increase

   Federal Reserve Governor Christopher Waller said a December interest rate hike is likely and that he remains open to a larger half-point move, according to Bloomberg, CNBC, The Hill and Financial Times. Waller cited upcoming inflation data as a key factor in determining the size of any increase. Market odds place a December hike near 89 percent, with traders expecting a quarter-point rise unless inflation runs hotter. A half-point increase would mark the largest Fed rate rise since 2022.

   Why it matters

   The Federal Reserve has been tightening monetary policy to combat inflation, and Waller's comments signal continued pressure on borrowing costs. A half-point hike would represent a more aggressive pace than the quarter-point increases that have characterized recent policy moves. Investors are watching the next Consumer Price Index report closely because Waller has tied the possibility of a larger increase to the inflation print. Higher rates affect savings yields, certificate of deposit returns and credit card borrowing costs for consumers.

   What is confirmed

   • Federal Reserve Governor Christopher Waller said a December rate hike is likely and that he is open to a possible half-point increase.
   • Waller cited CPI inflation data as a key factor in deciding whether to support a larger half-point rate hike.
   • A half-point increase would be the largest Federal Reserve rate rise since 2022.
   • Traders put the odds of a December Fed hike near 89 percent.

   Still unconfirmed

   • Wall Street expects a quarter-point December hike unless the inflation print comes in hotter than forecast.

   What to watch next

   • The next Consumer Price Index report and its impact on the size of the December rate decision.
   • The Federal Reserve's December policy meeting and whether Waller or other officials push for a half-point hike.
   Sources used for this update (17)

   1. www.globalbankingandfinance.com — Latest Banking & Finance News & Analysis
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   5. www.cnbc.com — Oil today: Iran, US, crude, wti, brent, trump
   6. CNBC — Fed Governor Waller sees December hike likely, opens door to possible half-point increase
   7. Financial Times — Top Federal Reserve official considers largest rate rise since 2022
   8. Reuters — S&P 500, Dow futures climb as oil slide lifts sentiment
   9. MarketWatch — CPI report moments away: Waller says CPI key to possible half-point hike — live updates
   10. The Economist — The countdown to the Fed’s next move
   11. Bloomberg.com — Fed’s Waller Backs December Rate Hike, Open to Larger Move
   12. The Hill — Fed’s Waller opens door to half-point rate hike in December
   confidence 92%