[Federal Reserve Governor Waller: Inflation Data Supports Fed's September Rate Hike Decision, But Consecutive Hikes Are Not Necessary] BlockBeats News, October 8 — Federal Reserve Governor Waller stated in an article that the Fed's decision to raise interest rates in September was the result of months of accumulated evidence rather than being driven by a single data point. Waller recalled that the Fed had consecutively cut rates by 75 basis points from September to December 2025. However, in the first half of 2026, the labor market stabilized, inflation progress stalled, Middle East conflicts drove up energy prices, AI development increased tech consumption costs, and trade disputes along with new tariffs added upward pressure. After August inflation data exceeded expectations, the Fed decided to raise rates in September. Waller noted that the latest data reinforced the judgment of "stable employment, excessive inflation." Core PCE rose 3% year-over-year in August, with core inflation hovering around 2.5%–3.0% since spring 2024, exceeding the 2% target. He emphasized: "At least in the near term, policy will focus on the inflation side of our mandate." Waller expressed little concern about tightening policy leading to a severe slowdown but worried that accelerating inflation could elevate inflation expectations across the board. Regarding the future path, Waller outlined potential directions for rate hikes, such as possibly raising rates by another 75 basis points, but he did not commit to a specific pace or magnitude, stressing that decisions will depend on data. September projections showed that out of 18 participants, 16 anticipated at least one more rate hike this year, while 4 expected two more hikes. The market estimates an 85% probability of at least one rate hike before December and nearly an 80% probability of at least two hikes by March 2027. Waller stated that if the data aligns with expectations, further rate hikes are likely, but they do not need to occur in consecutive meetings and can be implemented within an acceptable timeframe. [Original Link]