Federal Reserve Governor Christopher Waller has warned that the fight to bring inflation down to the Fed's 2% target is not yet over, and that it may require higher interest rates than markets are currently expecting. Speaking at the Arkansas State University Agribusiness Conference, Waller remarked that while the economy is adapting well to higher interest rates, continued moderation in inflation is necessary before his outlook changes.
“Some believe that inflation will come down quite quickly this year,” said Waller. Although I would be delighted if the situation improved swiftly, I am not detecting any evidence of that in the economic information. Therefore, I am mentally prepared to endure a longer battle in order to get inflation to our desired level.
Waller noted that it might be a “long fight” to get inflation back to the Federal Reserve's target, and that he would not hesitate to do what is necessary to get the job done. He concluded his remarks by saying, “It may be a long fight, with interest rates higher for longer than some are currently expecting. I will not hesitate to take whatever actions are necessary to accomplish my job.
0. “Fed's Waller: The Job on Inflation Is ‘Not Done,' It Might Be a ‘Long Fight’; Interest Rates May Stay Higher for Longer” Forex Factory, 8 Feb. 2023, https://www.forexfactory.com/news/1204601-feds-waller-the-job-on-inflation-is-not
1. “Fed's Waller says he's prepared for ‘longer fight' against inflation” msnNOW, 8 Feb. 2023, https://www.msn.com/en-us/money/markets/feds-waller-says-hes-prepared-for-longer-fight-against-inflation/ar-AA17g2kD
2. “Fed's Waller: The job on inflation isn't done, it might be a ‘long fight'” ForexLive, 8 Feb. 2023, https://www.forexlive.com/centralbank/feds-waller-the-job-on-inflation-isnt-done-it-might-be-a-long-fight-20230208
3. “Fed's Waller Says Rates May Need to Be Higher for Longer Than Some Expect” Bloomberg, 8 Feb. 2023, https://www.bloomberg.com/news/articles/2023-02-08/fed-s-waller-says-may-need-rates-higher-for-longer-than-some-see