Waller Hints at September Rate Hike Possibility, Market Reaction Rises to 60%
Kevin Waller, the Chair of the U.S. Federal Reserve, hinted at the possibility of a rate hike in September during the Jackson Hole Economic Policy Symposium, delivering a message of vigilance regarding inflation. The market's probability of a September rate increase rose from 35% to 60%. Waller emphasized that core inflation must sufficiently approach the Fed's target, stating that if not, there would be 'work left to do' for the Fed. Experts analyzed his remarks as suggesting a September rate hike. Michael Strain, an economist at AEI, mentioned that if rates are held steady, the market would likely question his statements. The Wall Street Journal analyzed that Waller may be in a position where he has to implement a September rate hike due to his tough stance on inflation. Stephen Blitz, an economist at TS Lombard, assessed that Waller's comments leave uncertainty compared to his predecessor. Traders reacted immediately, raising the likelihood of a September rate hike. Waller may face pressure to explain the achievement of price stability goals.
-- Price
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