US Federal Reserve Governor Chris Waller expressed concerns over rising inflation during a lecture in Frankfurt, joining a growing number of policymakers advocating for a potential interest rate hike. With consumer inflation hitting a three-year high in April, largely due to soaring energy prices exacerbated by geopolitical tensions, Waller suggested that the Fed should eliminate the 'easing bias' language from its policy statement. This change would clarify that further rate cuts are unlikely, aligning with the views of three regional Fed presidents who also support this shift. However, Waller tempered expectations by stating that he does not foresee immediate rate increases, advocating instead for a pause on interest rate changes in the near term. The Fed's Open Market Committee had previously held rates steady in late April, reflecting a divided stance among its members. As incoming Fed chair Kevin Warsh prepares to take over, he will face a committee with differing opinions on the future direction of interest rates, particularly in light of ongoing inflationary pressures influenced by the length of the conflict in Iran.