Fed Governor Waller Signals Flexibility on Timing of Next Rate Hike
Federal Reserve Governor Christopher Waller indicated the central bank is not locked into raising rates this month, adding to uncertainty about near-term policy moves.
Federal Reserve Governor Christopher Waller cast fresh doubt Thursday on the likelihood of an interest rate increase later this month, telling an audience that "there is some flexibility" in deciding when to next tighten monetary policy — remarks that suggest policymakers are in no rush to act.
Waller's comments add to a growing body of signals from senior Fed officials that the central bank may hold rates steady at its upcoming meeting rather than deliver another hike. The statement is significant given Waller's standing as a Fed governor, a role that carries a permanent vote on interest rate decisions.
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The Fed has been navigating a delicate balancing act in recent months, weighing persistent inflation against signs of a cooling labor market and tightening credit conditions. Any indication from a voting member that the pace of rate increases could slow tends to move financial markets and reshape expectations among investors and economists alike.
While Waller did not rule out a future rate increase, the emphasis on flexibility contrasts with the more hawkish posture the Fed maintained throughout much of its aggressive tightening cycle. Observers will now closely watch upcoming economic data and remarks from other Fed officials — including Chair Jerome Powell — before the central bank's next scheduled policy meeting.
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