US Federal Reserve official signals December rate hike likely

Christopher Waller, a member of the Federal Reserve's policy committee, has signalled openness to another rate increase when the central bank meets in December, while leaving the door open for potentially larger moves. Speaking on the state of the US economy, Waller characterised both economic growth and labour market conditions as fundamentally sound, though he expressed continued concern about inflation running above the Fed's 2 per cent target. His comments come as the central bank weighs how aggressively to continue its campaign of rate hikes aimed at cooling price pressures. Waller indicated that upcoming October consumer price inflation data would be crucial to shaping the Fed's policy direction, suggesting the decision on both the timing and magnitude of future rate moves hinges on what the latest readings reveal about inflation trends. The remarks reflect ongoing debate within the Fed about balancing efforts to control inflation against risks of slowing economic activity too sharply. Market participants have been closely monitoring Fed communications for signals about the trajectory of monetary policy as policymakers assess whether recent rate increases have begun to have their intended cooling effect on prices.