Fed governor hints at interest rate hike

NEW YORK — The U.S. central bank may need to raise interest rates "in the near term" if coming data show inflation continuing well above the 2% target, Federal Reserve Governor Christopher Waller said Monday, in remarks that characterized monetary policy as being at a "crossroads."

Waller told the New York Association for Business Economics that he'll be leaning heavily on inflation data, starting with a consumer price index report Tuesday, noting that the Fed should not be "lackadaisical" if the data break in the wrong direction.

"Sternly staring at inflation until it melts before our withering gaze is not an option," Waller said.