Fed Governor Waller Signals Potential Policy Tightening if Inflation Data Comes in Hot This Week

According to Christopher Waller, a Federal Reserve governor, the FOMC should consider tightening monetary policy soon if core inflation readings this week come in elevated, Waller said today (July 13) during a speech at the New York Association for Business Economics in Manhattan.

Waller emphasized that central banks must avoid complacency when inflation significantly exceeds targets, stressing that unanchored inflation expectations require more aggressive rate hikes and longer policy tightening. He cautioned against both delayed policy responses and premature easing, noting that expectations inflation could become unanchored if inflation remains elevated.