Fed's Waller: Bigger than 75 bps hike possible in July on strong sales and housing data

"I support another 75 basis points (bps) rate hike in July," Federal Reserve Governor Christopher Waller said on Thursday, as reported by Reuters. Waller further noted that he could lean toward a bigger rate increase if retail sales and housing data come in stronger than expected.

Additional takeaways

"I expect rate increases will continue after July at a pace that's dependent on incoming data."

"After July, further increases will be restricting demand."

"I expect policy to be restrictive until there has been a sustained reduction in core PCE inflation."

"A soft landing is very plausible, based on strong labor market; recession can be avoided."

"Until I see a significant moderation in core prices, I support further rate hikes."

"Fed is now, and must be, utterly focused on inflation fight."

"US labor market is very strong, data does not show weakening."

"Inflation is far too high, we are far from our goal of stable prices."

"June inflation report was a major league disappointment."

"There are signs of slowing in economic activity, but not convinced it will damage the labor market."

"Causes of inflation don't affect approach to policy."

"Financial market response to Fed's actions show Fed retains credibility."

"With inflation so high, there is a virtue in front-loading policy tightening."

Market reaction

The US Dollar Index edged lower from multi-decade highs it set earlier in the day after these comments but was last seen still rising 0.7% on the day at 108.80.