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Waller says more Fed rate hikes may be needed, but pace can vary
Waller warned that inflation remains too high and noted it is near 5.5 years above the Fed’s target, while the U.S. Dollar Index was marginally higher near 102.3 after his comments.
Federal Reserve Governor Christopher Waller said the Fed may need additional interest rate hikes as inflation remains too high, while emphasizing the pace of further moves does not necessarily have to follow a consecutive-meeting path. FXStreet reports that he made the comments during a speech at the Central Bank of the Republic of Türkiye (TCMB) Istanbul Economic Forum.
Waller said inflation is still elevated, describing it as approaching 5.5 years above the Fed’s target, and warned the situation could put inflation expectations at risk. He also pointed to persistent inflationary forces, including an AI buildout and ongoing energy shocks, and said the labor market remained solid and stable in September even though jobs created declined.
According to FXStreet, Waller cited evidence that the economy has been strengthening in the second half of 2026. He also said Fed communications should focus on signaling possible policy choices without relying on forward guidance promises, and FXStreet reported no major immediate reaction in the U.S. dollar after the remarks.
FXStreet added that as of writing the U.S. Dollar Index, DXY, was marginally higher near 102.30, and characterized Waller’s tone as distinctly hawkish based on a speech tracker score of 8 out of 10.
Latest closeDollar index 102.19 ▲0.3%