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Federal Reserve Governor Expects Over a 0.75% Interest Rate Increase
Summary: Member of the Federal Reserve Board of Governors of the USA since 2020, Christopher Waller was present at a recent event that took place in Victor, Idaho. Speaking at the event, he said he would support a 75 bp at the next FOMC meeting, scheduled for July 26-27. The two key metrics that he cited ...
Member of the Federal Reserve Board of Governors of the USA since 2020, Christopher Waller was present at a recent event that took place in Victor, Idaho. Speaking at the event, he said he would support a 75 bp at the next FOMC meeting, scheduled for July 26-27. The two key metrics that he cited were retail sales and housing.
Markets are pricing in a probability of a whole percentage point, or 100 basis points, but Waller said the market is "getting ahead of itself." In the interview, he continued to say that he thinks a 100 BP increase is "unlikely."
Talking about what the FED should do to control inflation, which has been at its highest since 1981, Waller said he would keep an open mind as new data comes in. Wednesday's consumer price index data showed 12-month inflation at 9.1%.
Retail sales data is to be released on Friday and is expected to show an increase in spending of 0.9% in June, a month with a CPI of 1.1% growth. The worries are that the US is heading towards a recession, but according to Waller, he is "feeling fairly confident" that will not happen.
Some users on Twitter are less optimistic, with users like Waldo saying, “It has to be 100bp” and others saying similar comments.
Waller's opinion has a relatively optimistic outlook in a world of pessimism, and as an investor could be taken as a small sigh of relief.
Author: Garrett Meifert
Tags: Christopher Waller,Federal Reserve Bank,Interest Rates
Link: Federal Reserve Governor Expects Over a 0.75% Interest Rate Increase [Copy]
