Fed Governor Christopher Waller Signals Potential 50 Basis Point Rate Hike Following Hot Inflation Data
Federal Reserve Governor Christopher Waller has signaled a hawkish stance following the release of October's Consumer Price Index (CPI) data, which exceeded economist expectations. The CPI rose 0.4% month-over-month, while core CPI climbed 0.3%, both coming in 0.1% higher than projected. This hot inflation reading complicates the outlook for a year-end market rally. Waller indicated that if inflation data remains elevated, he would support a 50 basis point hike at the Federal Reserve's final meeting of the year in December to protect the central bank's credibility. While the market currently prices in an 85% probability of a quarter-point hike, the possibility of a larger half-point increase has risen from near zero to approximately 15%.
Topics: CPI Federal Reserve Inflation Interest Rates
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Part of the story U.S. Inflation Data and Fed Governor Waller's Hawkish Stance Drive Interest Rate Trading Surge (9 articles)