Federal Reserve Governor Gives ‘C+’ Grade to Inflation Report; Keeps Rates on Hold for Now

Federal Reserve Governor Christopher Waller recently gave a “C+” grade to the latest inflation report at the Peterson Institute for International Economics. While he acknowledged that progress on inflation was slow, he viewed it as positive news. Waller stated that he would need to see several improved inflation readings before voting to lower interest rates from their current high levels.

Waller emphasized the importance of holding rates steady until price pressures subside and highlighted the need for continued positive inflation data in the coming months. He expressed skepticism about the need to raise rates due to accelerating inflation, noting that wage growth was slightly higher than the Fed’s target of 2%. However, he believed that inflation could be managed without significantly impacting the labor market. He reassured that there was no immediate need for a substantial increase in unemployment to address inflation concerns.