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Fed’s Waller Says Three 2022 Rate Hikes ‘Still a Good Baseline’

  • Says it may be four or even five hikes if inflation stays high
  • Running off balance sheet earlier could help tighten: Waller
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WATCH: Federal Reserve Governor Christopher Waller discusses the outlook for the U.S. economy, the central bank’s policy and its balance sheet.Source: Bloomberg
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Federal Reserve Governor Christopher Waller said that three interest-rate increases this year was a “good baseline” but there may be fewer or even as many as five moves, depending on inflation.

“Three hikes is still a good baseline; we will have to wait and see what inflation looks like in the second half of the year,” Waller said in an interview Thursday on Bloomberg Television with Kathleen Hays. “If it continues to be high, the case will be made for four, maybe five, hikes,” he said, but added that if inflation abated -- as many forecasters including him expect it will -- “then you could actually pause and not even go the full three.”