Sat, Jun 10, 2023 @ 01:13 GMT
HomeLive CommentsFed Waller supports 50bps hikes for several meetings

Fed Waller supports 50bps hikes for several meetings

Fed Governor Christopher Waller said in a speech, “longer-range inflation expectations have moved up from a level that was consistent with trend inflation below 2 percent to a level that’s consistent with underlying inflation a little above 2 percent.”

When these expectations are “anchored”, “they influence spending decisions today in a way that helps inflation move toward our target,” he added.

“To ensure these longer-term expectations do not move up broadly, the Federal Reserve has tools to reduce demand, which should ease inflation pressures,” he said”.

“I support tightening policy by another 50 basis points for several meetings”. In particular, “I am not taking 50 basis-point hikes off the table until I see inflation coming down closer to our 2 percent target.” Additionally, Waller said he supports “having the policy rate at a level above neutral” by the end of this year.

Full speech here.

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