- Federal Reserve Governor Christopher Waller stated he supports making the central bank's next interest rate move just as likely to be an increase as a cut due to persistent inflation risks.
- The ongoing U.S. and Israeli conflict with Iran has driven oil prices over 100 dollars a barrel, creating a prolonged energy shock that is keeping inflation elevated.
- Financial markets have rapidly adjusted expectations, with the odds of a 2026 interest rate hike shooting up as investors brace for a sustained inflation surge.
- Waller emphasized that while his current stance is to remain patient, he will not rule out voting for a rate hike if inflation fails to slow down soon.
Federal Reserve Governor Christopher Waller signals next policy move could be interest rate hike
May 22, 2026, 2:25:51 PM UTC(6 hours ago)
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From:@DeItaone
FED SIGNALS RATE HIKES BACK ON THE TABLE
Federal Reserve Governor Christopher Waller said the Fed may raise rates again if inflation stays high amid rising energy prices tied to the Iran war.
Waller said rate cuts are no longer more likely than hikes and called for removing the Fed’s “easing bias.” The Fed kept rates unchanged in April, but inflation concerns continue to grow.