Fed’s Waller says he is in favour of raising the Fed Funds rate at the July FOMC meeting

Federal Reserve Board Governor Christopher Waller speaks on his economic and policy outlook before the Money Marketeers of New York University.

Headlines via Reuters:

  • Favors raising rates at the July Federal Open Market Committee (FOMC) meeting
  • Increasingly
    confident banking stress won’t derail the economy
  • Fed likely to need
    two more 25 basis point rate hikes this year
  • Cooler CPI data is welcome but need to see if it is sustained
  • Inflation has shown
    false dawns before
  • Banking sector is
    strong and resilient
  • While the job market has
    slowed, it remains very strong
  • Monetary policy
    changes are moving through economy more quickly
  • Bulk of past rate
    hikes already have impacted economy
  • Fighting inflation
    remains main goal, Fed will succeed
  • Jobs, economic
    strength gives the Fed space to hike further

Waller tends towards the hawkish end of the spectrum, its hardly surprising he is still thinking two more hikes will be needed. He argues (see above) that past rates hikes have pretty much already impacted on the economy, hence m,ore are needed.

This article was written by Eamonn Sheridan at www.forexlive.com. Source