Federal Reserve governor Christopher Waller has detailed he is ready to get behind 50 bps rate hikes until inflation subsides. Economics
that raising the benchmark interest rate by 50 bps at every meeting is necessary to stop inflation.
Waller explained his opinion while speaking at the Institute for Monetary and Financial Stability in Frankfurt, Germany. Waller further detailed that he is positive about the labor market being able to cope with the increased rates without spurring higher levels of unemployment. “If we can get unemployment to just 4.25%, I would consider that a masterful performance,” Wallerduring his speech. Waller says he can envision the Fed increasing by 50 bps all the way until inflation is tamed.
Waller stressed that in time, the Fed’s monetary policy will deliver results and show how things are working. “Over a longer period, we will learn more about how monetary policy is affecting demand and how supply constraints are evolving,” he noted in his speech. “If the data suggest that inflation is stubbornly high, I am prepared to do more.”