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Waller says Fed shouldn't 'fight the last war' on inflation but warns hikes still possible
CNBC • • business
Key Points:
- Federal Reserve Governor Christopher Waller expressed concern about persistent inflation but urged caution, advising the Fed to wait for more data before raising interest rates.
- Waller identified new inflation drivers beyond traditional factors, highlighting tariffs, rising energy prices linked to Middle East conflicts, and demand spillovers from artificial intelligence.
- He warned against overreacting based on past mistakes, emphasizing a balanced approach to avoid both premature tightening and delayed responses to inflation.
- Despite inflation concerns, Waller noted positive factors such as a strong labor market and anchored inflation expectations, while cautioning against complacency.
- Waller's comments precede the release of June consumer price index data, with the Fed's next meeting scheduled for late July amid mixed market expectations on potential rate hikes.
