July 6, 2026, 4:20 PM EDT. Federal Reserve Governor Christopher Waller said the balance of risks is swinging toward higher inflation as the July 28-29 meeting nears. The Fed's latest June outlook bumped the 2026 Personal Consumption Expenditures (PCE) inflation call up to 3.6%, up from 2.7% in March. The federal funds rate projection also moved to 3.8%, above March's 3.4%. The central bank left rates unchanged in June, but the market priced in a 25% chance for a hike in July. The projections showed Fed officials split, with some backing more than one hike this year. Waller said the Fed remains committed to its 2% inflation target and noted risk has shifted, with inflation now the bigger worry than jobs.
