Federal Reserve Board of Governors Christopher Waller said Monday that while he’s not very enthusiastic about the recent rise in headline inflation numbers, Governor Waller reiterated that he sees no reason to change his posture significantly as a result. The Fed Governor took aim at markets that have been extraordinarily nervous about month-to-month inflation data, saying he sees no reason to ‘overreact’ to near-term inflation numbers.
Highlights
I’m leaning toward supporting a cut in December.
There is still some way to go to reduce the policy rate to neutral, with rate cuts expected to continue over the next year.
Monetary policy remains significantly restrictive.
The direction of the medium-term policy rate is clearly downwards.
Recent data has raised concerns that inflation progress is stalling significantly above 2%.
I’m less pleased with the pick-up in inflation, but I don’t want to overreact.
The labor market is finally in balance, we should aim to keep it that way.
The average inflation targeting framework was very backward-looking and blew up very quickly.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
