Fed's Waller sees no sign of 'quick' decline in inflation


Federal Reserve Governor Christopher Waller said on Wednesday that inflation seems poised to continue slowing this year but the US central bank's battle to reach its 2% target "might be a long fight" with monetary policy kept tighter for longer than anticipated, as Reuters reported.

Key comments

"There are signs that food, energy, and shelter prices will moderate this year," Waller said in remarks prepared for delivery at an Arkansas State University conference, and that the Fed's rapid increases in interest rates had begun "to pay off."

"But I'm not seeing signals of ... quick decline in the economic data, and I am prepared for a longer fight," Waller said.

The surprisingly strong gain of 517,000 jobs in January showed the economy was holding up well, for example, Waller said, but also meant that "labor income will also be robust and buoy consumer spending, which could maintain upward pressure on inflation in the months ahead."

Though wage growth has slowed, the decline is "not enough," Waller said.

"The Fed will need to keep a tight stance of monetary policy for some time."

US Dollar update

The bulls are in charge while above 103.00 but the price is testing the dynamic trendline support. If this were to give way, a bearish thesis can be drawn for a continuation lower below 103.00.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD bears pause for a breather ahead of US PCE data

AUD/USD bears pause for a breather ahead of US PCE data

AUD/USD touched a nearly four-week low on Friday, though it lacks follow-through as traders opt to wait for the release of the US PCE Price Index later during the US session. The crucial US inflation data could offer cues about the Fed's rate-cut path and drive the USD. 

AUD/USD News
USD/JPY flat-lines below 150.00 after softer Tokyo CPI print

USD/JPY flat-lines below 150.00 after softer Tokyo CPI print

USD/JPY holds steady near the top end of its weekly range following the release of softer-than-expected Tokyo CPI, though it struggles to find acceptance above the 150.00 mark. The BoJ's rate-hike plan, along with a weaker risk tone, underpins the safe-haven JPY and caps the pair amid subdued USD price action. 

USD/JPY News
Gold price hangs near two-week low; US PCE data awaited

Gold price hangs near two-week low; US PCE data awaited

Gold price languishes near a two-week low touched on Thursday as traders await the release of the US PCE Price Index for cues about the Fed's rate-cut path. The crucial inflation data will influence the USD and provide a fresh directional impetus to the non-yielding yellow metal. 

Gold News
SEC clarifies meme coins do not fall under federal securities laws

SEC clarifies meme coins do not fall under federal securities laws

The Securities & Exchange Commission released an official statement on its website on Thursday, clarifying that meme coins are not subject to federal securities laws.

Read more
February inflation: Sharp drop expected in France, stability in the rest of the Eurozone

February inflation: Sharp drop expected in France, stability in the rest of the Eurozone

Inflation has probably eased in February, particularly in France due to the marked cut in the regulated electricity price. However, this overall movement masks divergent trends. Although disinflation is becoming more widespread, prices continue to rise rapidly in services, in France as well as elsewhere in the Eurozone.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025