Fed's Waller calls for two more rate hikes, perhaps one

One of the U.S. Federal Reserve's top officials called for two more interest rate hikes before the end of the year.

Yet additional "good" data on inflation might mean that the latter of those may not be necessary.

In remarks prepared for a speech at the Money Marketeers of New York event, Governor Christopher Waller said: "“I see two more 25-basis-point hikes in the target range over the four remaining meetings this year as necessary to keep inflation moving toward our target.

"I see no reason why the first of those two hikes should not occur at our meeting later this month."

Waller delivered his speech on Thursday evening.

Should the two consumer price reports due out between the 25-26 July Fed policy meeting and that in September bring "good news" then that might mean the second hike might not materialise.

Nonetheless, unlike many observers, Waller believed that the lion's share of the impact from past policy tightening had already had its impact on the economy.

In his opinion, that meant waiting for a lagged effect could mean that the central bank ends up falling short of its target.

Also on Thursday evening, James Bullard, the well-known policy hawk at the helm of the St.Louis Fed announced that he was to step down to take up an academic post.

According to CNBC, Bullard had some advice for the Fed ahead of his departure.

"The risk with inflation is that it does not turn around and go back to a low level," Bullard said.

"As long as the labor market is so good it is a great time to get this problem behind us and not replay the 1970s."