Fed Governor Christopher Waller said he would support hikes that pass through exceed the "neutral" level.
Highlights
- Fed Governor Christopher Waller says he would support hikes that exceed the “neutral” level.
- Waller: “I am not taking 50 basis-point hikes off the table until I see inflation coming down closer to our 2 percent target” The central bank official said he thinks the Fed can raise rates and tamp down demand without causing a severe economic downturn.
- The Fed’s aim will be to reduce labor demand without a big rise in the unemployment rate, Waller said.
- The statements support sentiment reflected in minutes from the rate-setting Federal Open Market Committee meeting held in early May.
- The fed funds rate currently is set between 0.75% and 1%.