Fed Governor Chris Waller is the most-hawkish member of the inner circle at the Fed so it's no surprise that he's supporting aggressive action to get inflation under control.
“If the data comes in as I expect, I will support a similar-sized move at our July meeting,” Waller told a Society for Computational Economics conference in Dallas. “The Fed is ‘all in’ on re-establishing price stability.”
Waller said tightening would likely push up unemployment from the current level of 3.6% to 4-4.25 and possibly higher. He said recession worries are "a bit overblown.”
Waller spoke at an event also attended by former Fed governor Kohn who cautioned the Fed against hiking rates too high. There's a groundswell of commentary building on that front and that will be an important pushback as the Fed nears 3% and the economy slows.
“It requires judgment and confidence to know when to back off,” Kohn said.
