Fed may consider rate hikes if July core inflation remains high: Waller

Federal Reserve Governor Christopher Waller stated that policymakers may need to raise rates in the near term if July core inflation remains high and signals broad price pressures. Such hikes could tighten financial conditions, impacting borrowing costs, consumer spending, and economic growth prospects. Although some outlooks suggest a path toward inflation stability without further rate increases, market uncertainty persists. The Fed continues to monitor underlying inflation to determine the necessity of these policy adjustments.