Loading ...Yield Curve Inverts, Prices In Multiple Rate-Cuts After Fed’s Waller Goes Full Hawktard
Fed Governor Christopher Waller said he decided to support a quarter-point hike because geopolitical events called for caution, even though the data were “screaming” for a half-point rise. However, Waller, speaking Friday in an interview on CNBC, said he would like to “front-load” interest-rate hikes:
“I really favor front-loading our rate hikes, that we need to do more withdrawal of accommodation now if we want to have an impact on inflation later this year and next year,” he told CNBC’s Steve Liesman during a live “Squawk Box” interview.
“So in that sense, the way to front-load it is to pull some rate hikes forward, which would imply 50 basis points at one or multiple meetings in the near future.”
In addition to the rate hikes, Waller said he thinks the Fed needs to start reducing its bond holdings soon.