Fed’s Waller fuels debate on larger rate hike after high inflation data

Fed Governor Christopher Waller’s remarks after hotter-than-expected inflation data have reignited debate over a larger rate hike, a shift that could move Treasury yields, the dollar and market expectations for the Fed’s policy path. The comments follow high inflation readings that keep pressure on policymakers weighing whether to accelerate tightening. The signal matters because rate expectations feed directly into borrowing costs, dollar strength and risk-asset valuations, including crypto. Traders will watch upcoming inflation and labor data, Fed speakers and fed funds futures pricing for confirmation of whether a bigger hike gains support.