Fed's Waller Turns Hawkish on Inflation After Oil Shock

Fed Governor Christopher Waller reversed course on July 6, warning inflation risks are rising—a turnabout from February when he saw tariff effects as temporary and core inflation near the Fed's 2% target. March's oil shock tied to Iran's conflict became the pivot point. By May, the Fed had abandoned its easing bias. Markets now price a 25% chance of a July rate hike.