Fed’s Waller Backs December Hike, Says 50 Basis Points May Be Needed

Federal Reserve Governor Christopher Waller said he would support a December rate increase, with a larger move possible if core inflation stays high, putting U.S. rate policy in focus for crypto markets.

Speaking Nov. 10, Waller said the Fed needs to tighten policy further because inflation is too high. He described September’s inflation data as poor and said he was especially concerned about price increases spreading across categories.

Even if the October consumer price index improves from September, Waller said he would back a 25-basis-point increase at the Fed’s December meeting. He said a month-over-month rise of about 0.3% or more in October core CPI could mean the Fed needs to raise rates by 50 basis points.

That makes October core inflation the key threshold in Waller’s case for a larger move. His support for 25 basis points applies even if the broader October CPI reading improves, while the 50-basis-point possibility depends on core CPI reaching the stated level.