Christopher Waller, a member of the U.S. Federal Reserve, stated that if core inflation continues to rise, the central bank may need to consider increasing interest rates in the short term. The upcoming Consumer Price Index (CPI) report for June, set to be released on July 14, is expected to be a key factor in determining future rate direction.
According to Reuters, Waller made his remarks during an event in New York on July 13. He noted, "If core inflation comes in high again this week, the Federal Open Market Committee (FOMC) will need to consider a rate hike in the short term."
Waller assessed that while employment and consumer spending in the U.S. remain stable, inflationary pressures are re-emerging. The core Personal Consumption Expenditures (PCE) inflation rate increased from 3.0% in December of last year to 3.4% in May of this year.
He identified factors contributing to rising prices, including tariffs and increasing energy costs.
Waller expressed that if core inflation slows in the coming months, he would support maintaining current interest rates. Conversely, he emphasized that if inflationary trends persist, the Fed must be prepared to raise rates.
* This article has been translated by AI.
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