Federal Reserve & Finance
Fed Governor Waller Favors a Quarter-Point December Rate Increase
Christopher Waller’s London speech sets out his own preference for tighter policy. The remarks are not a Federal Open Market Committee decision.
One governor’s position
In remarks published Tuesday, Federal Reserve Governor Christopher Waller said he would support a quarter-point rate increase in December even if October consumer inflation showed improvement. He left open the possibility of a larger policy response if inflation came in substantially above his expectations. The speech text places his remarks before the release of the October CPI; the speech should not be read as a reaction to that report.
Why he backed a pause
Waller said he voted to leave rates unchanged at the preceding meeting because expectations of later tightening had already influenced financial conditions. His argument was about timing: if markets believe rates will rise, financial conditions can tighten before the next vote. That effect could reverse if expectations change. His preference for December is not a commitment by other voting members.
The jobs question
Waller also distinguished relatively stable net employment from the movement of individual workers into and out of jobs. He questioned whether low hiring and low separations might signal a less dynamic job market, while describing several possible explanations rather than settling on one. The labor discussion matters because steady payroll totals alone cannot show whether job seekers are finding openings easily. The December vote remains a separate event.
Primary evidence
Reporting note: This independently composed article is based on the linked primary records. Publication and event dates are stated separately. Agency claims are identified as such; an allegation, charge or scheduled event is not presented as a finding, conviction or completed event. Readers should consult the official record for amendments and later action.