I already hear how it's being said that this is a mistake, considering what happened in 2021 and 2022. But just because it didn't work once doesn't mean you should never think that way again, says Waller during a speech in St Louis.
Waller refers to the latest inflation wave, when the Fed received criticism for repeated statements that inflation would be just "transitory".
I count on a higher inflation being only temporary, which is another word for transitory, he says.
He believes that President Donald Trump's tariffs could at most force up inflation temporarily to four or five percent. Waller says that even if there are fewer tariffs, and thus less inflation, the Fed would lower the interest rate to try to compensate and stimulate growth in that way.
Christopher Waller is one of the politically appointed members of the board, the governors, and was nominated to the position by Trump during his first term in the White House.
