50 basis points message from Fed Member Waller!

According to Fed Member Christopher Waller, 50 basis point rate hikes should remain an option until US inflation softens towards the Fed's target.

Speaking in Frankfurt on Monday evening, Waller said: “I support 50 basis point rate hikes for multiple meetings. "I will not remove a 50 basis point rate hike from the table until I see inflation go down to the 2 percent target," he said.

The Fed increased interest rates by 50 basis points this month, after inflation hit a 40-year high in the US. The Fed will begin its balance sheet shrinkage on Wednesday with a monthly reduction of $47.5 billion. According to the data released on Friday, the personal consumption expenditures price index (PCE price index), which is the inflation indicator followed by the Fed, increased by 6.3 percent annually in April.

A 50 basis point message was also given in the Fed minutes.

At the Federal Open Market Committee (FOMC) meeting held at the beginning of May, the officials of the US Federal Reserve agreed that they should increase interest rates by 50 basis points each at the meetings in June and July, and that the tight steps taken at the beginning will give flexibility to the central bank for the rest of the year.

In the minutes of the FOMC meeting dated May 3-4, it was emphasized that all members have a "strong commitment and determination" to restore price stability, and it was stated that they would also take into account financial conditions while interest rate hikes continue.

In the minutes, where it was stated that "most of the participants decided that an increase of 50 basis points in the target range would be appropriate in the next few meetings", it was stated that "With regard to the balance sheet reduction risks, many participants noted the potential for unexpected effects on financial market conditions".