Fed's Waller Signals Possible Reversal of Rate Cuts

Federal Reserve Governor Waller says policymakers may undo at least three earlier precautionary rate cuts without a large rate hike.

Updated on Nov. 11, 2026 in Economic Indicators

Bold flat-color editorial illustration of a tall stack of wooden blocks with one block shifted out of line, in deep red, cream, and navy. — Federal Reserve Governor Christopher Waller said Tuesday that policymakers may reverse at least three earlier precautionary rate cuts without a large rate hike. AI Illustration. Upload story photo >

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Federal Reserve Governor Waller said on Tuesday, November 10, that policymakers may need to reverse at least three earlier precautionary rate cuts. He added that officials are not considering rate increases of 150 or 200 basis points.

Why it matters

The remarks signal that Fed officials are weighing a gradual unwinding of past easing rather than an abrupt tightening. Officials want to avoid major damage to the U.S. economy and a sharp downturn.

The remarks reference at least three earlier precautionary rate cuts that policymakers may undo, while rate increases of 150 or 200 basis points are explicitly ruled out. Officials have not specified the timing or pace of any reversal.

The players

Federal Reserve Governor Waller

Waller is a member of the Federal Reserve Board of Governors who participates in setting U.S. monetary policy.

The details

Waller said policymakers may undo at least three earlier precautionary rate cuts without moving to a large rate hike. The comments were made on Tuesday, November 10, and emphasized that officials do not want to inflict major damage on the economy or cause a sharp downturn.

Tuesday, November 10, 2026: Waller makes remarks on reversing earlier rate cuts.

Macro View

The Federal Reserve's earlier precautionary rate cuts are now being reconsidered, marking a potential turn from easing toward tightening. Officials are signaling a measured unwinding rather than the sharp hikes of 150 or 200 basis points seen in more aggressive tightening cycles.

If the Federal Reserve reverses earlier rate cuts, borrowing costs on mortgages, auto loans, and credit cards could rise over time. Households should watch for changes in loan rates and savings yields as the Fed's direction becomes clearer.

The takeaway

The Fed's signal suggests a measured approach to unwinding past easing, so borrowers and savers should plan for gradual rather than abrupt rate changes. Monitoring upcoming economic data releases will offer the clearest indication of how quickly policy may shift.