News update as of November 10, 2026. This reflects conditions at the time of writing and is for informational purposes only, not financial advice.
Federal Reserve Governor Christopher Waller said on Tuesday, November 10, that he supports raising interest rates at the Fed’s December 8–9 meeting, and that a larger half-point increase should be considered if inflation stays hot.
What Waller Said
Speaking in London ahead of the October US inflation report, Waller said he would support a 25 basis point hike in December even if October’s inflation data improves on September’s. He added that if core CPI rises by about 0.3% or more in the month, a 50 basis point move should be on the table, warning that a smaller move could put the Fed’s credibility at risk. He also said further tightening would be needed “sooner rather than later”.
Why It Matters
Waller is one of the most closely watched Fed officials. A governor openly discussing a half-point hike is a strong hawkish signal, and it comes just days after a much stronger-than-expected October jobs report.
Markets were already pricing a better-than-80% chance of a quarter-point hike in December, which would lift the target range from 3.75%–4.00% to 4.00%–4.25%. Before Waller’s comments, markets saw almost no chance of a half-point move.
Market Reaction
- USD/JPY rebounded from around 157.90 to above 158.10 after his remarks.
- Gold, which had rallied to about $4,140 on Monday, slipped back toward $4,100 as higher rate expectations reduce the appeal of non-yielding assets.
- The broader dollar steadied after a sell-off on Monday.
What to Watch
- October CPI (November 10): core inflation at or above 0.3% on the month is now the key threshold Waller has set out.
- FOMC minutes (November 18): how many officials share Waller’s view?
- Fed decision (December 9): 25 or 50 basis points?