Fed's Waller Now Says Rate Increases Are Possible

Summary

Fed Governor Christopher Waller has stated he cannot rule out rate hikes if inflation doesn't slow, causing a shift in market expectations. The report also discusses the symbolism of new Fed Chair Kevin Warsh being sworn in at the White House.

• Waller, previously a rate-cut advocate, now open to rate hikes.
• Inflation expectations are rising, raising concerns.
• Waller cites breakevens and Michigan numbers as indicators.
• New Fed Chair Kevin Warsh to be sworn in at White House, unusual.
• Treasury Secretary Scott Bessent suggests rate cuts may not happen soon.
• The president wants lower rates but faces hawkish Fed.