Fed's Waller
- Need some improvement in services inflation X housing for overall inflation to reach 2%.
- Increasingly confident policy is well-positioned to slow economy, get inflation back to 2%
- Cannot say for sure if Fed has done enough
- Data over the next couple months will hopefully tell if the Fed has done enough
- Recent loosening of financial conditions a reminder to be careful about relying on market tightening to do Fed's job
- Encouraged by signs of moderating economic growth
- Inflation still too high, too early to say if slowing will be sustained
- Supply-side problems mostly behind us. Monetary policy will need to do the work from here.
- Premature to rely on productivity growth gains to guide stance of Fed policy.
- Consumer spending is calling, manufacturing and nonmanufacturing activity has slowed.
- Labor market is cooling off, but still fairly tight and will watch closely.
- Need some improvement in services inflation ex housing for overall inflation to reach 2%
- Will closely monitor goods, services prices in coming weeks to see if inflation still on downward path.
Fed Waller is a Governor on the Federal Reserve board which gives him a permanent vote on policy.
Comments are hopeful for the soft landing with the careful eye still on inflation.
- Stocks remained steady and near unchanged.
- Yields are modestly lower in the short end and modestly higher out the curve
