the Fed will not respond to inflation as much as it would have in the past – Christopher Waller

“We don’t want to move too fast chasing inflationary ghosts,” the Fed governor said Thursday, Christopher Waller, and added that the Fed will not respond to inflation as much as it would have in the past, as reported Reuters.

Featured statements

“Higher asset prices are not necessarily a bubble.”

“Look closely at home prices, but part of this is due to fundamental shifts in demand.”

“Inflation of 2.25% or 2.5% is expected over the next 2 years.”

“If we were to see inflation of 4%, month by month, we would be very concerned.”

“The Fed won’t raise rates until it sees inflation above target for a long time.”

“I have not seen anything that should cause a change in future orientation as of now.”

“We had a huge increase in productivity during COVID, I don’t think that will go away.”

Market reaction

The US Dollar Index it clings to modest daily gains at 90.85 after these comments.

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