Waller says Fed could raise rates again if data stays on track, without hiking at every meeting

Federal Reserve Governor Christopher Waller said the Fed is likely to raise interest rates further if incoming economic data develops as expected, though he added that policymakers do not need to deliver hikes at back-to-back meetings. He said rate increases should be implemented within an acceptable time frame rather than on a fixed meeting-by-meeting schedule. Waller also pointed to persistent inflation risks. According to his remarks, U.S. inflation has remained above the Fed’s target for about five and a half years. He said factors including artificial intelligence infrastructure buildout and ongoing energy shocks are still adding inflation pressure and could put inflation expectations at risk. On the labor market, Waller said conditions remained solid in September. Even though the number of newly added jobs declined, he said there is evidence that the U.S. economy is strengthening in the second half of 2026. He also said the Fed can avoid making explicit commitments through forward guidance while still improving communication by signaling possible policy options to markets.