Fed Governor Christopher Waller said over the weekend, “we’re at a point we can start thinking maybe of going to a slower pace,” but “we’re not softening”.
“Quit paying attention to the pace and start paying attention to where the endpoint is going to be,” he urged. “Until we get inflation down, that endpoint is still a ways out there.”
Last week’s CPI report was “good, finally, that we saw some evidence of inflation starting to come down, but I just cannot stress [enough] this is one data point. We’re going to need to see a continued run of this kind of behavior and inflation slowly starting to come down, before we really start thinking about taking our foot off the brakes here,” he said.
