A Federal Reserve Governor has publicly stated that they are seriously looking at a rate hike.
I kind of think that the collapse of the cease fire with Iran, and the oil price spikes that have resulted, make this even more likely.
Federal Reserve Governor Christopher Waller said policymakers may need to raise rates in the near term if underlying inflation continues to signal broad price pressures.
“If we get another hot reading on core inflation this week, then the FOMC will need to consider tightening monetary policy in the near term,” Waller said Monday, referring to the central bank’s rate-setting committee, in remarks prepared for an event in New York.
The Bureau of Labor Statistics is due to release fresh data on consumer prices on Tuesday.
Waller emphasized the economy was in good shape, with the labor market appearing stable and consumer demand resilient. Still, he said, monetary policy was at a “crossroads” because of inflationary pressures driven by tariffs, energy prices and the build-out of artificial intelligence infrastructure.
“No matter how you cut it, or what measure you want to use, inflation is up this year,” Waller said. “At this point, I am concerned about the elevated pace of core inflation.”
I'm a dove on inflation, not that counts for anything, but the fact that this probably has Donald Trump's head exploding amuses me.
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