Waller says policy risks have shifted, backs holding rates amid energy-driven inflation
Federal Reserve Governor Christopher Waller said policy risks have changed and backed holding interest rates steady in the near term, in a May 22 guest lecture at the Frankfurt School of Finance and Management.
At a glance
- Waller supported holding rates steady and removing easing-bias language, per his May 22 Frankfurt speech.
- He cited PCE inflation of around 3.8 percent over the previous 12 months and core inflation of about 3.3 percent.
- Waller flagged prolonged Middle East energy price shocks as a risk of unanchoring inflation expectations.
VERDICT — CONFIRMED
Federal Reserve Governor Christopher Waller said policy risks have changed and backed holding interest rates steady in the near term, in a May 22 guest lecture at the Frankfurt School of Finance and Management. According to the speech text, Waller opposed both immediate cuts and increases, advocated removing easing-bias language from policy statements, and said the next move will depend on incoming data.
He noted PCE inflation rose around 3.8 percent over the previous 12 months, with core inflation near 3.3 percent, its highest in about two and a half years, and flagged the risk that prolonged energy price shocks from the Middle East conflict could unanchor inflation expectations. He described the labor market as stabilizing, with unemployment at 4.3 percent.
Key facts on file
- Waller supported holding rates steady and removing easing-bias language, per his May 22 Frankfurt speech.
- He cited PCE inflation of around 3.8 percent over the previous 12 months and core inflation of about 3.3 percent.
- Waller flagged prolonged Middle East energy price shocks as a risk of unanchoring inflation expectations.
