Fed Governor Waller Explains SEP Policy Signal Function and Current Inflation Context

English summary

Fed Governor Waller spoke at the Istanbul Economic Forum, emphasizing the importance of the Summary of Economic Projections (SEP) as a flexible communication mechanism. With US core PCE inflation rebounding to 3% and persistent supply shocks, the Fed raised rates by 25 basis points in September 2026 to a range of 3.75%-4%. The dot plot indicates potential further tightening this year, with market pricing an 85% probability of a rate hike in December.