Fed’s Waller sees additional rate hikes to get inflation down faster

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1. 2h ago

   Fed Officials Signal More Rate Hikes Ahead To Lower Inflation

   Federal Reserve officials indicate that another interest rate increase is likely coming this year to combat persistent inflation, though they show no immediate urgency for an October hike. Federal Reserve Governor Chris Waller stated that the central bank will likely need to enact further policy tightening and additional rate hikes to bring inflation down faster if economic data holds up. Waller noted that while more moves are needed, there is flexibility regarding the pace and timing of these decisions, meaning future rate increases do not necessarily need to arrive consecutively.

   Why it matters

   Minutes from the recent Federal Reserve meeting reveal hawkish unity behind the September rate hike, where the central bank was unanimous in its decision to raise rates. Economic signals have evolved since that meeting as policymakers weigh how aggressively to proceed against ongoing inflation pressures. Market participants are monitoring these monetary policy signals closely as Treasury yields rise amid the central bank commentary.

   What is confirmed

   • Federal Reserve Governor Chris Waller said he expects the Fed will need to enact more interest rate hikes to bring down inflation faster if economic data comes in as expected.
   • Federal Reserve minutes show officials see another rate hike coming this year to combat persistent inflation, but indicate no urgency for an October increase.
   • The Federal Reserve was unanimous about raising interest rates during its September meeting.

   Still unconfirmed

   • Investors are awaiting a 30-year Treasury auction as yields rise following the recent central bank commentary.

   What to watch next

   • Upcoming economic data releases that could alter the timing or necessity of further rate increases.
   • Signals from Federal Reserve officials regarding whether a rate hike will occur later this year.
   Sources used for this update (19)

   1. CNBC — Fed officials see another hike coming, but no sign as to when, minutes show
   2. Bloomberg.com — Fed Minutes Show Hawkish Unity Behind September Rate Hike
   3. Reuters — Fed minutes could detail rate-hike decision, policy path
   4. Yahoo Finance — The Fed was unanimous about raising rates in September. Economic signals have since changed.
   5. WSJ — Fed Minutes Signal Further Rate Increase This Year, but No Urgency for October Hike
   6. CNBC — Treasury yields rise as Fed's Waller says more hikes needed, investors await 30-year auction
   7. Yahoo Finance — Fed’s Waller sees additional rate hikes to get inflation down faster
   8. The New York Times — A Top Fed Official Casts Further Doubt on a Rate Rise This Month
   9. Axios — The Fed's going to take its time with rate hikes
   10. Reuters — Fed's Waller: More hikes needed, but there is 'flexibility' about the pace
   11. AP News — Fed minutes: Another rate hike likely coming this year to combat persistent inflation
   12. stocktwits.com — BTC Price Slips Below $83K, Crypto Stocks Fall After Report Of Possible US Strikes On Iran
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