Waller backs 25bp December rate hike, leaves door open to 50bp

Federal Reserve Governor Christopher Waller said he would support a 25-basis-point rate hike in December and would also back a 50-basis-point increase if needed. Waller said the Fed would need further monetary tightening, with U.S. inflation still too high and September inflation data disappointing. Waller added that broad-based price pressures were particularly concerning, and said even if October CPI improves from September, it could still support a 25-basis-point rate hike in December. If October core CPI rises by around 0.3% or more, the Fed may need to deliver a 50-basis-point increase in December.