Fed's Waller puts half-point rate hike into the mix for December
By Steve Goldstein
Fed Gov. Christopher Waller said a half-point rate hike may be needed.
Federal Reserve Gov. Chris Waller on Tuesday put the possibility of a half-point rate hike into the mix, depending how hot the consumer price data for October comes in.
The yield on the 2-year U.S. Treasury BX:TMUBMUSD02Yrose 4 basis points as Waller discussed the idea at an event in London.
Federal funds futures activity still doesn't show any possibility of a half-point increase, according to LSEG data.
He said that if core CPI comes in at 0.3% or stronger, he would recommend supporting a half-point rate hike. Otherwise, he said he would lean toward supporting a quarter-point increase.
"Let's just say it. September's inflation data were bad. There was no silver lining," said Waller.
He said he was particularly concerned about the breadth of price increases.
-Steve Goldstein
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11-10-26 0443ET
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