Fed Waller: FOMC may need to raise rates beyond December's 5.1-5.4% central tendency view

Christopher Waller is a member of the Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term Board of Governors.

The event he was due to speak at has been cancelled, the Federal Reserve says its due to technical difficulties.

From his prepared remarks:

• Fed may need to raise rates beyond December's 'central tendency' view of 5.1-5.4% if incoming job and inflation data does not pull back from strong readings for January
• My view will depend on what the data say
• Data last month challenged my view in January that the FOMC was making significant progress in moderating activity and reducing inflation
• Data have shown that instead of loosening, the labor market is tightening
• Retail sales and spending data suggest progress on reducing demand may have stalled
• FOCM will do what is needed to reduce inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term to 2% target
• 'There may be some bumps on that path, but I assure you, the FOMC’s dual mandate objectives will be achieved'
• Any fear that we might face two-sided risk in achieving dual mandate was blown away by January jobs numbers
• Excessively tight labor market complicates the path toward price stability
• Wages are growing faster than they have in decades, which may contribute to keeping inflation elevated
• Recent data indicate we have not made as much progress on inflation as thought
• That goes for both overall and core inflation
• Recent data underscore the view that the fight to bring inflation down to target will be slower and longer than many had expected just a month or two ago
• Some reasons for optimism, such as sharp deceleration in rent increases
• It may be that last month's data releases 'were a blip' and coming data will show activity and inflation resumed their decline

So we have the prepared text but of course given the event cancellation there will be no Q&A.

Waller's view seem reasonable enough, he's eyeing the data. On balance, I am going with a slight tilt (further) hawkish from Waller here. This:

• Any fear that we might face two-sided risk in achieving dual mandate was blown away by January jobs numbers

indicates which way he is leaning.

As a member of the Board of Governors Waller has a permanent vote on the Federal Open Market Committee (FOMC).