Waller Favors December Fed Hike, Leaves Half-point Move in Play

WHO:

Bloomberg - Federal Reserve Governor Christopher Waller discussed monetary policy, interest rates, and the US economic outlook with Bloomberg’s Francine Lacqua.

CNBC - Waller said the Federal Reserve needed to follow through on expectations for additional interest-rate hikes to protect its credibility.

CNBC - Dallas Fed President Lorie Logan said she expected two more quarter-point hikes before the Fed could pause to assess their effects. Logan is a voting member of the Federal Open Market Committee and is scheduled to become a nonvoting member in 2027.

CNBC - Chicago Fed President Austan Goolsbee said the Fed should avoid letting the economy run too hot, warning that overheating is “extremely painful” to reverse.

CNBC - Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented from the FOMC’s decision to hold rates steady at its October meeting.

Bloomberg - PIMCO economist Tiffany Wilding discussed Waller’s remarks and the October consumer price index data.

WHAT:

Bloomberg - Waller supported an interest-rate increase in December and said he would consider a half-percentage-point increase if inflation accelerated substantially.

CNBC - Waller said he was “leaning toward” a December rate increase even if October inflation was softer than expected. If inflation was higher than forecast, he said, “a 50 basis point hike in the policy rate should be considered at the December meeting.”

CNBC - Waller warned that raising rates by only 25 basis points in that higher-inflation scenario “would put our credibility at risk.”

CNBC - October CPI rose 0.4% overall and 0.3% excluding food and energy; both readings were 0.1 percentage point above the Dow Jones consensus.

CNBC - After the CPI report, traders fully priced a quarter-point December increase and put the odds of a half-point increase at 12.5%.

CNBC - The FOMC said “the accumulation of more information” would help guide policy to bring inflation down to its 2% target.

WHERE:

Bloomberg - Waller spoke at the Bank of England and Its Watchers event in London.

CNBC - Waller’s remarks were delivered in London.

WHY:

Bloomberg - Waller said stronger action could be needed to protect the Federal Reserve’s credibility if inflation continued to accelerate.

CNBC - Waller said failing to deliver expected hikes could cause markets to lower their rate expectations, immediately reducing interest rates and loosening monetary policy undesirably.

HOW:

CNBC - Waller said hikes need not occur at consecutive meetings, but promised increases should be implemented within a reasonable period. He said higher rates would be needed “sooner rather than later.”

CNBC - Waller characterized economic growth as “at a healthy pace” and the labor market as “solid,” though not dynamic in a low-hire, low-fire environment.

(UPDATED November 10, 2026 22:03 UTC)

Waller leaned toward a December rate hike, warning the Fed must protect its credibility. He said sharply rising inflation could justify a half-point increase, after October prices exceeded forecasts. Other officials supported further hikes as the Fed weighed inflation risks.