Fed's Waller: Inflation progress has been slow

Joshua Gibson FXStreet

Federal Reserve (Fed) Board of Governors member Christopher Waller noted late Monday that while inflation progress has been made, it has been "excruciatingly" slow.

Key highlights

Fed must not let uncertainty about policy paralyze action guided by data.

Inflation progress in past year excruciatingly slow.

Recent cpi disappointing, but could be the result of seasonally adjusted issues.

Cuts appropriate in 2025 if inflation repeats 2024 pattern.

Labor market remains strong, solid growth appears to be continuing in first quarter of 2025.

Expects disinflation and rate cuts to resume year on year.

Expects tariffs to have modest and non-persistent impact on prices that Fed should try to look through in setting policy.

Seasonal effects may distort inflation data.

Waiting for uncertainty to lift is a recipe for paralysis.

Not putting much weight on January retail sales given impact of cold weather.

Tariffs to have slight, enduring impact on prices.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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