Fed Governor Waller Indicates Support for Holding Rates if Disinflation Continues, Open to Hike if Inflation Heats Up

Federal Reserve Governor Christopher J. Waller stated that if recent signs of disinflation continue in upcoming data, he would be inclined to support holding the federal funds rate at its current level. However, he also noted that he would consider a rate hike if inflation were to accelerate. Waller highlighted upside risks to inflation from energy prices, AI buildout-related technology goods prices, and potential tariff increases.