Fed's Waller Says There is Flexibility in Timing for More Rate Hikes

By Jessica Coacci

Federal Reserve governor Christopher Waller said he anticipates additional rate hikes to support a timelier return of inflation to the Fed's target goal, but said there is some flexibility about when those hikes will occur.

Those additional rate hikes do not need to come at consecutive meetings, Waller said, but "they should be in place in an acceptable period of time," according to published remarks Waller delivered at an event in Istanbul early Thursday.

Waller's comments follow other remarks made by Federal Reserve Vice Chair Philip Jefferson and New York Fed President John Williams who signaled the Fed may take its time before deciding to raise rates again.

With proof that economic activity is strengthening in the second half of this year, Waller said he is not greatly concerned that tighter monetary policy threatens a damaging slowdown to the economy. Rather, Waller said he is concerned that the recent acceleration in inflation will lead consumers, investors, and price-setting businesses to revise upward their expectations for future inflation.

Waller also clarified his reasoning for wanting to raise interest rates by a quarter-point at the Fed's meeting in September.

Waller also said that while some suggested that monetary policy shifted in September based largely on a single data point --the consumer price index report for August-- he hopes now it is apparent that wasn't the case. Waller's decision was based on a "preponderance of evidence over several months that the risks for monetary policy had shifted, reflecting a strengthened labor market and a range of persistent inflationary forces," Waller said.

"Overall, the new data reinforce my view that the labor market is stable and inflation is too high," he said. "For at least the near term, policy will be focused on the inflation side of our mandate."

Write to Jessica Coacci at jessica.coacci@wsj.com

(END) Dow Jones Newswires

October 08, 2026 04:44 ET (08:44 GMT)