Fed's Waller's ready to axe 'easing bias,' says rate-cut talk now is 'crazy'
Waller said a rate hike is now as likely as a cut and cited rising inflation expectations after an Iran-war energy shock.
- On Friday, Federal Reserve Governor Christopher Waller said the central bank should drop its "easing bias" language, signaling that a rate hike is now as likely as a cut given persistent inflation risks.
- Mounting inflation risks driven by the Iran-war energy shock prompted the shift; manufacturing input prices jumped to 84.6 while unemployment at 4.3 percent suggests labor weakness is no longer the dominant policy concern.
- Pricing in contracts reflected a two-in-three chance of a quarter-point rate increase by October, as Waller warned that more inflation risks the Fed "getting behind the curve again," similar to 2021-2022.
- The hawkish shift creates an immediate split inside the Federal Reserve Board just one day after President Donald Trump swore in Kevin Warsh as Federal Reserve chair Thursday.
- Policymakers gather June 17-18 for the first Federal Open Market Committee meeting under Warsh, where officials will weigh whether to remove "easing bias" language from their policy statement.
19 Articles
19 Articles
Fed's Waller ready to axe "easing bias," though not advocating rate hikes yet
Federal Reserve Governor Christopher Waller, an influential voice in policymaking who until recently had advocated for lower interest rates, on Friday said the Fed should axe the “easing bias” from its policy statement and effectively open the door to a possible rate hike.
Fed Governor Waller Says Next Move Could Be a Rate Hike
United States · Monetary Policy Key Facts —The pivot: United States Federal Reserve Governor Christopher Waller said in a Frankfurt speech Friday that the central bank should drop its “easing bias” language because a Federal Reserve rate hike is now just as likely as a cut, the most explicit policy-stance shift from a sitting Federal […] The post Fed Governor Waller Says Next Move Could Be a Rate Hike appeared first on The Rio Times.
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Fed Signals Policy Shift as Waller Pushes for End to “Easing Bias” Amid Inflation Concerns
Federal Reserve Governor Christopher Waller on Friday signaled a notable shift in tone on U.S. monetary policy, calling for the removal of the central bank’s ... The post Fed Signals Policy Shift as Waller Pushes for End to “Easing Bias” Amid Inflation Concerns first appeared on [your]NEWS.
Fed's Waller can't rule out a rate hike 'further down the road' if inflation persists
Federal Reserve Governor Christopher Waller, who had pushed for a rate cut as recently as January, said on Friday that he can no longer rule out a rate hike "further down the road if inflation does not abate soon."
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