MNI BRIEF: Waller Sees Shorter Lags To Fed Policy

Federal Reserve Governor Christopher Waller said Friday the central bank's monetary tightening effort now has a quicker impact on inflation and the economy than it once did.

"I think it is much shorter now," he said in Q&A at a Council on Foreign Relations event. "I think it tends to be 9-12 months. So I think we are seeing a lot of the impact from monetary policy coming through in the next quarter or so." (See: MNI INTERVIEW: Fed's Lags To Inflation Have Shortened - KC Fed)

Waller added that he would be leaning toward a longer period of data, perhaps six months, to be able to decide whether it'd be appropriate to pause rate hikes. Additionally, Waller echoed his colleague Dallas Fed President Lorie Logan that if the central bank pauses and inflation surprises to the upside then the Fed could still raise rates higher.