Bitcoin Stuck Below $75K as Fed's Waller Floats 50bp Rate Hike

Bitcoin traded below $75,000 on Tuesday after Federal Reserve Governor Christopher Waller said he would support raising interest rates at the central bank’s December meeting.

Waller backs a December hike

Speaking at the Bank of England Watchers Conference in London, Waller said he would back a hike even if October inflation data showed improvement.

He said in his prepared remarks:

“While I am hoping for an improvement over September, even if this occurs, I would still support a 25 basis point increase in the FOMC’s policy rate at our December meeting.”

He added that a stronger move may be needed if core CPI inflation came in around 0.3% or higher, similar to the past two monthly readings.

Waller warned:

“In that case, I believe a 50 basis point hike in the policy rate should be considered at the December meeting. Hiking only 25 basis points would put our credibility at risk, a risk I am not eager to take.”

Why he held in October

Waller voted with the majority to hold rates steady in October, saying the committee’s communication had already led markets to price in some tightening.

He explained:

“So, while the precise timing of the hikes doesn’t matter, ensuring that the promised hikes are implemented in a reasonable period of time does.”