Waller Sets the Tone for Tuesday’s CPI Report: Hot Inflation Will Support Near-Term Rate Hikes

MetaEraJul 13, 2026
#Macro
On July 14 (UTC+8), Federal Reserve Governor Christopher Waller stated on Monday that if upcoming data indicates inflation remains significantly above the 2% target, the Fed may need to raise interest rates “in the near term.” He described current monetary policy as being at a “crossroads.” Waller noted that the policy direction will be determined by new information—including Tuesday’s CPI report—and emphasized that the Fed is currently in a phase where it should not “let its guard down” should data trends shift unfavorably.

Waller remarked: “At the current policy stance, inflation could still gradually decline toward the 2% target. However, I am equally concerned about an alternative scenario—namely, that data over the coming weeks may show inflation remaining elevated—or even rising further—which would necessitate tighter monetary policy in the near term.” He specifically expressed concern that recent inflation reports suggest price pressures are broadening across the economy, extending beyond last year’s import tariff hikes or recent energy cost increases, potentially reflecting more widespread, systemic inflation—requiring even more restrictive monetary policy.

Waller added, “If core inflation runs hot again this week, the FOMC will have to consider tightening monetary policy in the near term. It will take several months of consistently declining inflation data before we can confidently say inflation is moving in the right direction.” (Jinshi) (Source: Odaily)

[ME News]

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Waller Sets the Tone for Tuesday’s CPI Report: Hot Inflation Will Support Near-Term Rate Hikes

MetaEraJul 13, 2026
#Macro
On July 14 (UTC+8), Federal Reserve Governor Christopher Waller stated on Monday that if upcoming data indicates inflation remains significantly above the 2% target, the Fed may need to raise interest rates “in the near term.” He described current monetary policy as being at a “crossroads.” Waller noted that the policy direction will be determined by new information—including Tuesday’s CPI report—and emphasized that the Fed is currently in a phase where it should not “let its guard down” should data trends shift unfavorably.

Waller remarked: “At the current policy stance, inflation could still gradually decline toward the 2% target. However, I am equally concerned about an alternative scenario—namely, that data over the coming weeks may show inflation remaining elevated—or even rising further—which would necessitate tighter monetary policy in the near term.” He specifically expressed concern that recent inflation reports suggest price pressures are broadening across the economy, extending beyond last year’s import tariff hikes or recent energy cost increases, potentially reflecting more widespread, systemic inflation—requiring even more restrictive monetary policy.

Waller added, “If core inflation runs hot again this week, the FOMC will have to consider tightening monetary policy in the near term. It will take several months of consistently declining inflation data before we can confidently say inflation is moving in the right direction.” (Jinshi) (Source: Odaily)

[ME News]

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