Federal Reserve Governor Christopher Waller took a more hawkish stance: due to the prolonged conflict in the Middle East, rising energy prices, and the risk of more persistent inflation, he supports keeping rates at their current level in the near term. Waller said the Fed should remove language with an easing bias, since a rate cut no longer appears more likely than a rate hike.


He also noted that he can no longer rule out rate hikes later if inflation does not weaken, especially if inflation expectations begin to become unanchored. Previously, he had supported rate cuts, viewing earlier price shocks as temporary.
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