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Fed's Waller says more hikes are needed but can be flexible about the pace, downplays September NFP weakness

More hikes needed but flexible about the pace Further hikes do not need to come at consecutive meetings Inflation too high, with AI buildout, ongoing energy shock among a range of persistent inflationary forces There is evidence that economy is strengthening in the second half of 2026 Concerned high inflation, now approaching 5-1/2 years above target, will put inflation expectations at risk Labor market was "solid and stable" in September even though number of jobs created was down Anticipates additional hikes if data comes in as expected Fed communications can avoid the promises of forward guidance, but still improve outcomes with 'signaling' to markets about possible policy choices Full speech on the economic outlook here Live broadcast here Federal Reserve Governor Christopher Waller said that additional rate hikes will likely be needed to bring inflation back to the Fed’s 2% target