1/20, 7:26 PM (Source: TeleTrader)
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Fed's Waller backs 25 bp rate hike in February

United States Federal Reserve Governor Christopher Waller said on Friday that he expects "little turbulence ahead" for the national economy and that he "currently" supports a 25 basis point interest rate hike on February 1, adding that there is "a considerable way to go" until inflation goes back to targeted 2%.

A deceleration of economic activity will likely take place in the first trimester of 2023, "which is both expected and desirable" to help lower inflation, he said at an event hosted by the Council on Foreign Relations in New York City. Waller added that he still believes a soft landing is possible but that he is "cautious about the inflation outlook."

Notably, Waller also stated that "a robust labor market, despite modest economic growth, is a plus for workers and allows the Fed to focus on lowering inflation" without fear of severe consequences of elevated interest rates on jobs and income.

Baha Breaking News (BBN) / MS