Fed Governor Waller stresses 'flexibility' for June rate decision

“Whether we raise or skip at the June meeting will depend on how the data comes in over the next three weeks,” Fed Governor Christopher Waller said. While insisting that the Fed should “maintain flexibility” about whether to raise, pause or hold rates steady in June amid a trend toward raising rates in July, he expressed skepticism that the Fed has gone as far as it needs to in its fight against inflation. “I don’t expect data coming in over the next few months to make it clear that we have reached the final rate,” Waller said in a speech in Santa Barbara, California. “I don’t support holding off on raising rates until we have clear evidence that inflation is moving toward our 2% goal. But whether we raise or skip at the June meeting will depend on how the data comes in over the next three weeks,” Waller said. "Prudential risk management may indicate that interest rates will not be increased at the June meeting, but depending on the upcoming inflation data, we may be inclined to increase interest rates at the July meeting," Waller said, adding that the inversion in yield curves may indicate a belief that inflation will come down.