Fed Governor WALLER said the surge in long-term US Treasury yields is
suppressing demand in rate-sensitive sectors such as housing and autos and is,
to some extent, acting as monetary tightening the Fed did not intend. He
signaled last week the Fed may still need further hikes to curb inflation but
said officials retain flexibility on timing. Economists expect Wednesday’s CPI
to show headline inflation accelerated in September due to energy costs pushed
up by the US‑Iran war, while core inflation is expected to moderate.
