At a Dallas Federal Reserve conference on regional banking, Federal Reserve Vice Chair Michael Barr emphasized the need for banks to prepare for continued high interest rates due to the strong economy and low unemployment. He stressed that banks should not consider adjusting policy until there is evidence of progress on inflation.
Federal Reserve Governor Christopher Waller graded the latest inflation report as a ‘C+’ and highlighted the need for improved inflation readings before voting to lower interest rates. Despite slow progress, he welcomed the decrease in monthly inflation. Waller stated that he would require more positive inflation data over several months before considering easing monetary policy.
Waller also mentioned that it was unlikely for inflation to accelerate enough to require raising rates. He believed that wage growth, while slightly high, could be managed without a significant impact on the labor market. Waller emphasized the importance of good inflation data and stated that he would not support an easing in monetary policy without sufficient evidence of progress.
.png)
