Home Blockchain News Fed’s Waller is confident that current policy is properly positioned to lower inflation.

Fed’s Waller is confident that current policy is properly positioned to lower inflation.

by Michael Stark

**Federal Reserve Governor Christopher Waller expresses confidence in controlling inflation**

*Waller’s positive outlook*

Federal Reserve Governor Christopher Waller is growing more confident that the central bank’s current policy measures are well-positioned to bring inflation back under control. In a speech in Washington, D.C., Waller conveyed optimism about the steps taken to address high inflation levels.

**Policy stance on interest rates**

Waller’s remarks indicated that there are no immediate plans to cut interest rates. He acknowledged that inflation is still too high but also pointed out that the progress made so far suggests that further rate hikes may not be necessary.

**Assessment of economic activity**

During his speech, Waller expressed encouragement at the signs of moderating economic activity in the fourth quarter. He emphasized the need for caution in assessing the sustainability of this trend, given that inflation is still high.

**Upcoming policy meeting**

Waller’s comments come just ahead of the Federal Open Market Committee’s policy meeting in December. While markets expect the committee to maintain the current lending rate, Waller stressed the importance of remaining vigilant on inflation and keeping policy options open.

**Hawkish stance and shifting tone**

Known for his hawkish stance, Waller’s recent shift in tone is notable. His speech titled “Something Appears to Be Giving” contrasts with his previous speech, titled “Something’s Got to Give.”

**Evident signs of moderation**

Waller cited various indicators of economic moderation, including retail sales, the labor market, and manufacturing. He also noted the easing of supply chain pressures responsible for the initial surge in inflation. However, he cautioned that relying on this factor alone to bring inflation down would be unwise.

**Monetary policy’s role**

According to Waller, the responsibility now lies with monetary policy to bring inflation back down to the target of 2 percent. He emphasized the need for continued vigilance and proactive measures to achieve this goal.

**Monitoring inflation gauges**

Waller highlighted the flat consumer price index in October as a positive sign. He also mentioned the upcoming report on inflation measured by personal consumption expenditures, indicating a keen interest in closely monitoring these data points in the coming weeks.

In conclusion, Waller’s remarks reflect a cautious optimism about the current stance of monetary policy and its potential to address the ongoing challenge of high inflation.

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