Fed Governor Waller Backs December Interest Rate Hike
Fed Governor Christopher Waller said on November 10, 2026, that he favors a 0.25 percentage point rate increase in December. He would consider a 0.5 percentage point increase if the forthcoming U.S. October consumer price index shows price pressures continuing to rise sharply.
Federal Reserve Governor Christopher Waller said in London, United Kingdom, on November 10, 2026, that U.S. inflation remained too high and monetary policy needed to act promptly to bring inflation back to the 2% target over the medium term. He was inclined to support a 0.25 percentage point rate increase at the Federal Open Market Committee’s December meeting.
Federal Reserve headquarters in Washington, D.C.（VietVance）
His remarks came just hours before the release of U.S. consumer price index data for October 2026. Waller said he would consider a 0.5 percentage point rate increase if the data showed price pressures continuing to rise sharply; even if October inflation improved as expected, he would still favor a 0.25 percentage point increase.
The U.S. consumer price index rose 0.6% month on month and 3.7% year on year in September 2026. The report attributed part of the increase to a surge in gasoline prices linked to the U.S.–Iran war. Waller described the September data as “terrible” and said there was “no bright spot.” He also mentioned the potential inflationary effects of artificial intelligence development. Citing Federal Reserve research, he said the effects of energy price pressures passing through to the prices of goods and services could be more persistent than in the past.
Waller said that if October price trends resembled those in September, the Federal Reserve might need to take stronger action; in that case, raising rates by only 0.25 percentage points could damage its credibility. Whether rates will rise in December, and by how much, still depends on subsequent data and the Federal Open Market Committee’s decision.
Source: VietVance
