Fed govenor stresses resolve to cut inflation

Fed governor Christopher Waller has said the central bank is united in its efforts to bring down US inflation.

Speaking for the Institute for Monetary and Financial Stability Distinguished Lecture at the Goethe University Frankfurt in Germany, Waller said current US inflation remains alarmingly high and that core inflation is falling enough to meet the Fed’s target anytime soon.

He said the combination of strong consumer demand and supply constraints is generating very high inflation and that longer-range inflation expectations have moved up from a level  consistent with underlying inflation a little above 2 percent. He added, “I cannot emphasize enough that my FOMC colleagues and I are united in our commitment to do what it takes to bring inflation down and achieve the Fed’s 2 percent target. I support tightening policy by another 50 basis points for several meetings. In particular, I am not taking 50 basis-point hikes off the table until I see inflation coming down closer to our 2 percent target.”