Fed Governor Waller backs 75 basis point rate hike
• Waller said he would watch the data and keep an open mind
Federal Reserve Governor Christopher Waller backed a 75 basis point interest rate hike this month after a hot inflation report on Wednesday.
The markets reversed the course to reflect the his preference, hoping for a 45% chance to a full percentage-point rate hike.
Waller said he supported a 75 basis point hike at the July 26-27 meeting, but he would be watching data and keeping an open mind about what the Fed should do to control inflation, which is running at its fastest pace since 1981.
“My base case for July depends on incoming data,” he added. “We have important data releases on retail sales and housing coming in before the July meeting. If that data comes in materially stronger than expected, it would make me lean towards a larger hike at the July meeting to the extent it shows demand is not slowing down fast enough to get inflation down.”
Source - Federal Reserve
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