Fed may cut rate hike but not "soften" inflation fight

According to Christopher Waller, a member of the Federal Reserve Board of Governors, there is a possibility that the Fed may consider lower interest rate hikes at the next meeting. However, this doesn’t mean that the Fed intends to completely give up the hikes, which are necessary to curb inflation.

At an economic conference organized by UBS in Australia, Christopher Waller shared his views on some important monetary policy points. He believes that at the moment, the markets need to focus not so much on individual interest rate hikes and their size, but rather on the final result of the hikes. Waller doesn't think the hikes will be over in the foreseeable future.

He also noted that the Fed doesn’t consider stopping hikes, while the inflation rate is high. Thus, Fed officials intend to stick with the current policy until inflation falls to an acceptable level.

The published last week October report, which showed that the U.S. inflation rate was lower than forecast, gave hope for the best to officials. However, it’s impossible for sure that inflation is slowing down until the time several similar reports come out.