Fed Governor Warns of Larger Rate Hike if October Core Inflation Holds Steady
Fed Governor Christopher Waller said a 0.3% rise in core prices in October could force the central bank to consider a half-point rate increase in December, citing credibility concerns.
Federal Reserve Governor Christopher Waller told reporters in London on Tuesday that the central bank may need to raise its policy rate by half a percentage point at the December meeting if core inflation remains elevated. He said a rise of 0.3% or more in core prices for October – the same pace seen in the two preceding months – would make a 25-basis-point hike “a risk to our credibility.”
The Bureau of Labor Statistics reported core prices up 0.3% in October and overall consumer prices up 0.4% from September, figures that suggest inflation, while slightly easing, is still above target.
Waller, who was appointed to the Fed board by President Donald Trump, has previously argued for rate cuts, dissenting as recently as January. President Trump has repeatedly called for lower interest rates.
Separately, House Minority Leader Hakeem Jeffries criticized Stephen Miller, President Trump’s new chief of staff, calling him a “stone-cold racist” and saying he has “zero interest in working with” him. Jeffries, expected to become speaker in January, said he will not engage with Miller despite prior communication with Miller’s predecessor, Susie Wiles. The White House has not responded to requests for comment.
In other news, a federal judge upheld an injunction preventing the Trump administration from cutting trees at East Potomac Golf Links, finding that the tree removal was tied to a plan to replace the historic course with a new design. The ruling allows limited tree work only for imminent public-safety threats and requires the government to notify the court within 24 hours of any such action.