US Treasury yields rise as Waller backs another rate hike
In short
US Treasury yields rose after Federal Reserve Governor Christopher Waller said the Fed may need to act even though inflation looks calmer. He also said a half-point rate increase could be possible if inflation heats up again.
Money markets now fully expect a 25 basis point rate hike in December.
What the reporting says
US Treasury yields rose after Federal Reserve Governor Christopher Waller said action may be needed despite moderating inflation data. The move reflects shifting expectations for US monetary policy and a firmer short-dated yield outlook.
Why it matters
US Treasury yields moved higher after Federal Reserve Governor Christopher Waller pressed the case for further rate increases, despite moderating inflation data.