Fed's Waller Now Says Rate Increases Are Possible

• Fed Governor Christopher Waller supports removing easing bias from the FOMC statement and is prepared to vote for rate increases if inflation does not come down.
• Waller stated he 'can no longer rule out rate hikes further down the road if inflation does not abate soon' and if 'measures of inflation expectations... show signs of becoming unanchored.'
• The discussion highlights a potential conflict between the President's desire for rate cuts and the Fed's hawkish shift, with a new Fed chair being sworn in at the White House.

Federal Reserve Governor Christopher Waller has shifted to a more hawkish stance, now indicating he cannot rule out further rate hikes if inflation does not abate soon and inflation expectations become unanchored. This comes as a new Fed chair is about to be sworn in, with the President's stated goal of cutting rates, creating a potential divergence in policy outlook.