Fed's Waller (voter): Fed still has a ways to go on raising rates; Could become more comfortable downshifting to a 50bps hike but that would still be a significant move
- To early to make a decision on Dec meeting will need to see more data
- Economy and wage growth need to slow down, incoming data will determine how long FED raises rates
- Further half point rate rises could be warranted if economy stays strong
- Labor market is very tight despite signs of some cooling
- Inflation is being driven primarly by demand as bottlenecks have eased, recent CPI inflation
report was welcome news
- A 50bps hike would still be significant tightening, backs continued rate hikes to restrain demand
- Won't make a judgement on Dec move until see more data
- Seen some progress to dampen demand, but not yet enough