Federal Reserve Governor Waller said Tuesday's CPI and incoming data will determine policy direction, warning that if inflation remains well above the 2% target the Fed may need to raise rates in the short term. He described policy as at a crossroads and expressed concern recent reports show price pressures broadening beyond tariffs and energy — potentially signaling more entrenched, systemic inflation that would require tighter policy. If core CPI prints hot again this week, the FOMC would have

Federal Reserve Governor Waller said Tuesday's CPI and incoming data will determine policy direction, warning that if inflation remains well above the 2% target the Fed may need to raise rates in the short term. He described policy as at a crossroads and expressed concern recent reports show price pressures broadening beyond tariffs and energy — potentially signaling more entrenched, systemic inflation that would require tighter policy. If core CPI prints hot again this week, the FOMC would have to consider near-term tightening; Waller said it would take months of sustained declines in inflation data to be confident the trend is moving toward 2%.