Fed's Waller dismisses US CPI report as 'just one data point', markets 'way out in front'

Federal Reserve Governor Christopher Waller is a member of the Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term Board of Governors. The governors vote at each Federal Open Market Committee

• Waller is speaking on his economic outlook before the Australasia Conference, in Sydney, Australia

Headlines via Reuters:

• Friday's CPI report is "just one data point," markets "way out in front"
• Will need to see a run of CPI reports to take a foot off the brake
• Positive that goods prices came down with some moderation in services, but it needs to continue
• Fed caught "flatfooted" in 2021 when inflation seemed to moderate then "exploded"
• 7.7% CPI inflation is "enormous," fed still has a long way to go, rates will stay high for a while

More:

• Beginning to see a little softening in the labor market, but the "shocking part" is that strength remains after rate increases
• its critical that the US gets inflation down, "fairly quickly" if possible
• so far inflation expectations a couple of years out seem to be holding
• US policy rate is not that high given the level of inflation
• Federal Reserve can begin to think about moving at a slower pace

More:

• If expectations were to become unanchored, you wouldn't see it happening with a lot of advanced notice in the data. It wouldn't happen gradually. "You don't pop a balloon slowly. Once it goes, it goes."

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Waller is pouring some cold water on surging risk markets. Dunno why he called it Friday's CPI report.