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Annmarie Hordern reports that Governor Waller anticipates more interest rate hikes if economic data continue to align with expectations. Waller explained that upcoming increases would support a quicker return of inflation to the 2 percent target, but stated that there is flexibility on the timing of these hikes and they do not need to be consecutive.
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Stanley Druckenmiller recently criticized Federal Reserve officials for describing fed funds rates as restrictive during a New York conference, according to Hordern's report. Annmarie Hordern has also noted that years of low yields since the 2008 crisis established a psychological anchor for market participants in a separate article. These prior events frame the debate over the Fed’s current rate policy and expectations.