Waller Says Fed Rate Hikes Remain Possible, Data-Dependent
Federal Reserve Governor Christopher Waller said further Fed rate hikes may be needed if economic data meet expectations, but the central bank does not have to raise rates at consecutive meetings. He said any increases should come within a reasonable timeframe, while the pace remains flexible and data-dependent.
Waller cited US inflation staying above the Fed’s target for about five and a half years. AI infrastructure spending and ongoing energy shocks could keep inflation elevated and risk lifting inflation expectations. September’s labour market remained resilient despite fewer new jobs, and signs point to a stronger US economy in the second half of 2026. Waller said the Fed can signal its policy options without giving firm forward guidance.
The prospect of further Fed rate hikes could tighten financial conditions and weigh on crypto prices by reducing risk appetite. Traders are likely to remain sensitive to inflation, employment data and Fed comments, although the timing and pace of any moves are uncertain.
Bearish
The news is bearish for crypto in the near term because the possibility of further Fed rate hikes can support higher borrowing costs and tighter financial conditions. That may reduce demand for riskier assets, including cryptocurrencies, and prompt traders to trim exposure or wait for clearer signals. Inflation concerns linked to energy shocks and AI infrastructure spending, alongside resilient employment and signs of economic strength, could reinforce expectations that rates will stay restrictive.
The effect is not a commitment to immediate or consecutive hikes: Waller said the pace can remain flexible and depend on incoming data. This limits certainty and means inflation, jobs figures and subsequent Fed communications could quickly change market expectations. Over the longer term, persistent inflation and a prolonged period of tight policy would remain a headwind for crypto valuations, while softer data or a more cautious Fed stance could ease that pressure. The statement alone does not establish a lasting trend, so traders may see volatility around economic releases and policy signals.