Fed’s Waller Says Further Rate Hikes Remain Possible if Data Aligns

Federal Reserve Gov. Waller said further interest-rate increases remain possible if economic data develops as expected, but the central bank would not need to raise rates at consecutive meetings.

Waller said any additional increases should be implemented within an acceptable timeframe rather than delivered at every meeting. His comments leave the pace of future tightening dependent on incoming economic data.

He pointed to inflation remaining above the Federal Reserve’s target for about five and a half years. AI infrastructure investment and continuing energy shocks are adding pressure that could put inflation expectations at risk, Waller said.

The U.S. labor market remained resilient in September despite a decline in the number of new jobs, while evidence suggests the economy strengthened during the second half of 2026.

Waller also said the Fed can avoid making explicit commitments through forward guidance while signaling potential policy options to improve communication with markets.