Waller: The Federal Reserve should not signal a rate cut and may consider raising rates in the future
According to Jinshi reports, Federal Reserve Governor Waller stated that given the increasing risks of inflation, the Federal Reserve should no longer consider further rate cuts as the default plan. He pointed out that with the ongoing conflict in the Middle East, rising costs of oil and other commodities could trigger broader and more persistent inflation. Therefore, the Federal Reserve should stop signaling rate cuts. Waller believes that stabilizing interest rates in the range of 3.5% to 3.75% is the right approach and indicated that if inflation does not weaken soon, the possibility of future rate hikes cannot be ruled out.
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