Federal Reserve Governor Christopher Waller said in his latest statements on Tuesday that he has become more confident in the ability of current monetary policy to control inflation. In his words, Waller did not hint at any intention to cut interest rates, while emphasizing that inflation remains high for the time being. However, he noted tangible progress in several areas, suggesting that the Fed may not be obligated to raise interest rates at higher rates than are currently in place.
Two weeks before the Federal Open Market Committee meets to set interest policy on December 12-13, Federal Reserve Governor Christopher Waller announced improved confidence in the ability of current monetary policy to achieve inflation control. Markets widely expect the committee to remain stable on the key interest rate, however, bank officials have pointed to the importance of keeping their options open.
In the central bank’s fight against persistent inflation, Waller appears as one of the members calling for tightening monetary policy and raising interest rates, reflecting his tough stance in this context.
In recent statements, Federal Reserve Governor Christopher Waller provided a comprehensive assessment of economic activity, noting improvements in various areas such as retail sales, the labor market, and the manufacturing sector. Noting this, he pointed to the easing of supply chain pressures that contributed significantly to the initial rise in inflation rates.
Despite this improvement, Waller stressed that these factors cannot be fully relied upon to contribute to further reducing inflation rates. In another context, he hinted at a decline in inflation indicators, such as the stability of the consumer price index in October.
With economic data expected to follow in the coming weeks, starting with the personal consumption expenditures report, Waller remains cautious and concerned about inflation developments. On the other hand, Chicago Federal Reserve Bank President Austan Goolsbee expressed optimism that inflation would decline at a pace not seen since the 1950s, pointing to progress in slowing inflation outside the food sector.
