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Fed Governor Waller says an October pause would not end tightening

Waller said he expects additional hikes to bring inflation back to 2.0% faster, while noting timing could be flexible and hikes need not occur at back-to-back meetings.

Reported · Written up by our desk · Central Banks

Federal Reserve Governor Christopher Waller said that an October pause would not signal an end to the Fed’s tightening cycle, speaking Thursday at the Istanbul Economic Forum hosted by the Central Bank of the Republic of Türkiye, according to Action Forex.

Waller said that if the economy evolves as expected, he anticipates additional hikes to return inflation to 2.0% more quickly than he suggested was implied by the September FOMC minutes.

He also stressed there is flexibility on timing, adding that rate increases do not need to come at consecutive meetings, framing the discussion as about the end-point for policy rather than the meeting-by-meeting sequence.

Waller said the economy remains roughly where it was at the September meeting, with a stable labor market but inflation still too high, and he pointed to factors behind September’s hike including persistent energy pressure, the expanding AI buildout, and renewed

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