Federal Reserve Governor Christopher Waller said Wednesday that inflation looks set to slow further this year, but the US central bank’s battle to reach its 2% target “could be a long fight,” with policy tighter monetary policy for longer than expected, Reuters reported.
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“There are signs that food, energy and housing prices will ease this year,” Waller said in remarks prepared to be delivered at an Arkansas State University conference, and that rapidly rising interest rates by the Fed had begun to “bear fruit.”
“But I don’t see any signs of…rapid decline in the economic data, and I’m prepared for a longer fight,” Waller said.
The surprisingly strong gain of 517,000 jobs in January showed the economy was holding up well, for example, Waller said, but it also meant that “labor incomes will also be robust and encourage consumer spending, which could keep upward pressure on inflation in the coming months.”
Although wage growth has slowed, the decline “is not enough,” Waller said.
“The Fed will have to maintain a tight monetary policy for some time.”
US dollar update
Bulls rule above 103.00, but price is testing the support of the dynamic trend line. If this were to give way, a bearish thesis could be established for a continuation down below 103.00.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
