Fed’s Waller supports half-point rate hikes until inflation comes down

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Federal Reserve Gov. Christopher Waller, in a speech in Frankfurt, Germany, said he supports 50 basis point rate hikes for “several meetings,” which stands in contrast to Fed Chair Jerome Powell’s support for two consecutive half-point hikes, followed by reflection and a possible slowdown to quarter-point increases. “I support tightening policy by another 50 basis points for several meetings,” he said. “I am not taking 50 basis-point hikes off the table until I see inflation coming down closer to our 2 percent target. And, by the end of this year, I support having the policy rate at a level above neutral so that it is reducing demand for products and labor, bringing it more in line with supply and thus helping rein in inflation,” said Waller. He also said policy can tighten to tame inflation without causing a sharp increase in unemployment.

This article was originally published by Marketwatch.com. Read the original article here.

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