Fed's Waller
Fed's Waller
  • Need some improvement in services inflation X housing for overall inflation to reach 2%.
  • Increasingly confident policy is well-positioned to slow economy, get inflation back to 2%
  • Cannot say for sure if Fed has done enough
  • Data over the next couple months will hopefully tell if the Fed has done enough
  • Recent loosening of financial conditions a reminder to be careful about relying on market tightening to do Fed's job
  • Encouraged by signs of moderating economic growth
  • Inflation still too high, too early to say if slowing will be sustained
  • Supply-side problems mostly behind us. Monetary policy will need to do the work from here.
  • Premature to rely on productivity growth gains to guide stance of Fed policy.
  • Consumer spending is calling, manufacturing and nonmanufacturing activity has slowed.
  • Labor market is cooling off, but still fairly tight and will watch closely.
  • Need some improvement in services inflation ex housing for overall inflation to reach 2%
  • Will closely monitor goods, services prices in coming weeks to see if inflation still on downward path.

Fed Waller is a Governor on the Federal Reserve board which gives him a permanent vote on policy.

Comments are hopeful for the soft landing with the careful eye still on inflation.

  • Stocks remained steady and near unchanged.
  • Yields are modestly lower in the short end and modestly higher out the curve