Brace Yourself for Rising Interest Rates
Federal Reserve Governor Christopher Waller said he would support increasing interest rates past the “neutral” level in order to combat rising inflation.
“Over a longer period, we will learn more about how monetary policy is affecting demand and how supply constraints are evolving,” Waller said Monday.
“If the data suggest that inflation is stubbornly high, I am prepared to do more.”
The central bank official said he is “not taking 50 basis-point hikes off the table until I see inflation coming down closer to our 2 percent target.”
“And, by the end of this year, I support having the policy rate at a level above neutral so that it is reducing demand for products and labor, bringing it more in line with supply and thus helping rein in inflation.”