Free Trial

MNI BRIEF: Waller-Might Need More Hikes On Looser Conditions

The Federal Reserve could need to tighten monetary policy “a lot more” if financial conditions loosen materially, leading to stronger growth and a resurgence of inflation, Fed Governor Chris Waller said Friday.

“If this loosening of conditions makes things looser in the sense that growth takes off, employment doesn’t loosen and inflation starts to take off again then, yeah, we’re going to have to do a lot more,” he said during a Q&A after a speech at the Council on Foreign Relations. Waller has backed a 25bp hike at the next FOMC meeting.

“The market has a very optimistic view that inflation is just going to melt away. We have a different view. It’s going to be a slower, harder slog to get inflation down and thus we have to keep rates higher for longer and not cut them before the end of the year.” (See MNI INTERVIEW: Fed Rates To Peak Well Above 5%, No Cuts In 2023)

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.