United States Fed governor warns of potential rate hike
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Federal Reserve Governor Christopher Waller said Monday that the U.S. central bank may need to raise interest rates in the near term if core inflation remains elevated. Speaking at an event in New York, Waller cited persistent strength in the economy, stable labor markets and resilient consumer demand, while warning that tariffs, higher energy prices and artificial intelligence infrastructure spending are adding inflationary pressure. He pointed to the Fed’s preferred core PCE measure, which reached 3.4% year-on-year in May and has risen since January, and recalled criticism of delayed tightening in 2021–2022, stressing that several months of cooler data are needed. Financial markets reacted with higher Treasury yields and tech-stock losses.
More context
Timeline
- 2021-2022 Fed criticized for delayed tightening
- January 2024 Core PCE begins renewed rise
- May 2024 Core PCE reaches 3.4 percent
- Last month Fed holds rates at 3.5-3.75
- Last month Minutes show growing hike support
- This week Another core inflation reading expected
- Monday Waller warns of possible rate increase
- Monday Treasury yields rise, Nasdaq losses deepen
Why it matters
A potential rate hike could affect your wallet. Higher interest rates mean pricier loans and credit card debt. If you're planning a big purchase or refinancing, you might want to act sooner. Check your budget and financial plans.
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
