Fed Governor Backs 0.25% Hike at Next Meeting

Federal Reserve Governor Christopher Waller said Friday he favors a quarter percentage point interest rate increase at the next meeting, as he waits for more evidence that inflation is heading in the right direction.Confirming market expectations, the central bank official said during a Council on Foreign Relations event in New York that the Fed can dial down on the size of its rate hikes.related investing newsBut he also said it’s not time to declare victory on inflation, comparing monetary policy to an airplane that soared higher quickly and now is ready for a gradual descent.“And in keeping with this logic and based on the data in hand at this moment, there appears to be little turbulence ahead, so I currently favor a 25-basis point increase at the FOMC’s next meeting at the end of this month,” Waller said in prepared remarks. “Beyond that, we still have a considerable way to go toward our 2 percent inflation goal, and I expect to support continued tightening of monetary policy.“He did not specify how high he sees rates heading, and was scheduled to participate in a question-and-answer session following the 1 p.m. ET speech.Christopher Waller, U.S. President Donald Trump’s nominee for governor of the Federal Reserve, listens during a Senate Banking Committee confirmation hearing in Washington, D.C., on Thur …