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2026-05-22 22:05:31
[Woller Makes a Complete Shift: The Fed Should No Longer Treat Rate Cuts as the Default Option] ⑴ Federal Reserve Governor Waller said on Friday that given the growing risks of inflation, the Fed should no longer treat further rate cuts as the default plan. Just this January, he had supported rate cuts, marking a significant shift in his stance. ⑵ In his speech, Waller pointed out that with the ongoing conflict in the Middle East, rising costs of oil and other commodities are increasingly likely to trigger broader and more persistent inflation in the economy. Therefore, it is time for the Fed to stop signaling that its next action is most likely another rate cut. ⑶ He stated that maintaining interest rates in the current range of 3.5% to 3.75% is likely the right approach for the foreseeable future, adding, "If inflation does not subside soon, I can no longer rule out the possibility of future rate hikes."
