Fed Governor Christopher Waller Signals More Rate Hikes to Restore 2% Inflation

Federal Reserve Governor Christopher Waller expects additional interest-rate increases will be needed to help return inflation to the central bank’s 2% target, signaling a continued preference for tighter monetary policy.

Waller said the increases do not have to come at consecutive Federal Open Market Committee meetings. However, he indicated that the Federal Reserve should complete the additional tightening within an acceptable period.

The comments reinforce the importance of the 2% inflation goal in determining the path of U.S. interest rates. They also leave open the timing of any future increases, with no requirement that they be delivered meeting after meeting.