Fed's Waller Reverses on Rate Cuts, Signals Rates to Hold at 3.5%-3.75% on May 22

GateNews
According to Jin10, on May 22, Federal Reserve Governor Christopher Waller signaled the central bank should no longer treat additional rate cuts as the default policy plan, citing rising inflation risks amid Middle East tensions and elevated commodity costs. Waller stated that stabilizing rates in the current 3.5%-3.75% range is likely the appropriate course in the foreseeable future. He added that if inflation does not weaken quickly, he cannot rule out future rate hikes, and the Fed should communicate that its next move could be either a cut or a hike. The shift marks a departure from Waller's January 2026 stance when he supported rate reductions.
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