Waller: Hot Core Inflation This Week May Force Rate Hike Consideration
Fed Governor Christopher Waller said that if another hot core inflation reading appears this week, the central bank would need to consider a rate hike in the near term. He added that several months of lower core inflation are required to feel inflation is moving in the right direction.
Federal Reserve Governor Christopher Waller warned that a second consecutive hot core inflation print this week would compel the central bank to contemplate a near-term rate hike, according to remarks carried by a market news channel.
Waller stressed that only a sustained period—spanning several months—of softer core inflation readings would give the Fed confidence that price pressures are abating as desired. The comments underscore the data-dependent posture of U.S. monetary policymakers amid lingering inflation risks.
Markets are now pricing in a heightened probability of tighter policy if the upcoming inflation data surprises to the upside.
Source: First Squawk