Fed's Waller opens door to half-point rate hike in December

Fed Governor Waller signaling openness to a half-point rate hike in December directly impacts middle-market credit conditions by raising borrowing costs and potentially tightening liquidity. This stance suggests the Fed remains focused on combating inflation despite recent economic uncertainties, which could pressure leveraged borrowers and influence refinancing strategies. Credit professionals must anticipate higher debt service burdens and reassess risk premiums as funding costs rise, affecting deal structures and valuations in the leveraged-finance space.