WALLER said further rate hikes may be needed to return inflation to the Fed’s 2% target, but the pace can be flexible, leaving room to pause at the Fed’s October policy meeting. He said, "If economic data continue to come in as expected, I expect further hikes to help bring inflation back to 2% more quickly." He added hikes need not occur at consecutive meetings but should be completed within a reasonable timeframe. He did not quantify how much higher policy rates must rise to curb inflation sti

WALLER said further rate hikes may be needed to return inflation to the Fed’s 2% target, but the pace can be flexible, leaving room to pause at the Fed’s October policy meeting. He said, "If economic data continue to come in as expected, I expect further hikes to help bring inflation back to 2% more quickly." He added hikes need not occur at consecutive meetings but should be completed within a reasonable timeframe. He did not quantify how much higher policy rates must rise to curb inflation still more than 1 percentage point above the Fed’s target. WALLER cited a stronger US economy, a lingering energy-price shock from the Iran war, and AI-driven demand for key goods and services as factors increasing the need for higher rates.