Fed's Waller Signals Possible July Rate Hike as Core Inflation Stays Elevated
- Fed Governor Christopher Waller said July 13 that if upcoming core inflation readings remain "hot," the FOMC will need to consider tightening policy in the near term, calling the trend a "signal, not noise" rather than data noise (Bloomberg, NYT).
- Traders responded by pricing roughly a 47% probability of a July rate hike and 76% odds of a move by September, per market-implied probabilities cited in coverage (CNBC).
- Waller said the Fed shouldn't "fight the last war" on inflation even as he warned hikes remain possible, underscoring a hawkish tilt ahead of this week's CPI and PPI prints (MarketWatch).