Federal Reserve Governor Christopher Waller expressed his observations on Tuesday regarding the slowing momentum in the economy. This strategic slowdown, aimed at bringing inflation back to the target rate of 2%, has been a focus of central bank policymakers.
Speaking at the American Enterprise Institute, Waller delivered remarks titled "Something Appears to Be Giving." He highlighted recent economic data, indicating a cooling labor market, a moderation in economic activity, and a slowdown in consumer spending. These key indicators suggest that the Federal Reserve's restrictive monetary policy is appropriately effective and that inflation is gradually moving in the desired direction.
Waller, a member of the Federal Open Market Committee responsible for determining interest rates, expressed his optimism regarding these recent findings. "I am encouraged by what we have learned in the past few weeks—something appears to be giving, and it’s the pace of the economy," he stated.
However, Waller also cautioned against premature assumptions. While there is room for optimism, inflation still remains too high. It is necessary to observe whether these cooling economic trends will continue to be sustainable.
(This is a developing story. Please check back soon for more details.)