Fed Officials Split Over Rate Hike as Inflation Data Looms
The Federal Reserve's decision to raise interest rates at its upcoming meeting is far from certain. While some Fed officials believe that raising rates is necessary to address stubbornly high inflation, others are hesitant to act.
New York Fed president John Williams told CNBC that he believes the Fed should 'wait and see' whether a rate hike is needed. He pointed out that there are no clear signs yet whether monetary policy is sufficient to bring inflation back to target in the next year or two.
Fed governor Christopher Waller echoed this sentiment, noting that if recent improvements in inflation data continue into August's reports, he would be inclined to support holding rates steady. However, if the data shows that these improvements are fleeting, he is open to a rate hike.
The comments from Williams and Waller come after Federal Reserve chairman Kevin Warsh emphasized that the Fed must be confident that underlying inflation is moving towards its objective at sufficient speed before making any decisions.