Fed's Waller Rules Out Further Rate-Cut Signals Amid Rising Inflation, Sees Rates at 3.5%-3.75% Range

According to Jin10, on May 22, Federal Reserve Board member Christopher Waller said the Fed should stop signaling further rate cuts as the default plan given rising inflation risks, a notable shift from his support for cuts in January. Citing persistent Middle East conflicts driving up oil and commodity costs, Waller stated the central bank should halt signaling its next move would likely be another rate cut. Waller indicated keeping rates at the current 3.5%-3.75% range is likely appropriate in the foreseeable future. He added: "If inflation does not weaken quickly, I cannot rule out the possibility of future rate hikes." Waller now agrees the Fed should make clear its next rate adjustment could be either a cut or a hike.
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