Fed’s Waller: need aggressive rate hikes now while economy can take it
2022.09.10 22:00
FILE PHOTO: The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger
(Reuters) – If the Federal Reserve is able to keep the unemployment rate below 5%, it can be aggressive on bringing down inflation but after that tradeoffs will appear, Fed Governor Christopher Waller said on Friday.
“If the unemployment were to stay under 5%, I think we could be really aggressive on inflation. Once it gets over 5 there are going to be obvious pressures to start making tradeoffs. If we don’t get inflation down, we’re in trouble,” Waller said in remarks following a speech to the Institute for Advanced Studies in Austria.
The Fed should be aggressive with rate hikes while the economy “can take a punch,” he said.
