MNI: Fed’s Waller Determined To Bring Inflation Back To Target

Federal Reserve officials remain uncompromising in their mission to return U.S. inflation back to the central bank’s 2% target, Governor Christopher Waller said in prepared remarks Tuesday.

“We have reaffirmed this numerical goal repeatedly since 2012, and, in tightening monetary policy since early last year, we’ve made clear that we’re determined to bring inflation down to 2%,” he said at a conference sponsored by the Mercatus Center at George Mason University.

Market participants are wondering just how much damage to the economy the Fed is willing to inflict if the remaining disinflation is painful. MNI reported earlier this year that officials would consider a possible shift to an inflation target band at its next framework review, which begins next year and will be unveiled in 2025. The Fed has raised interest rates starting in March of last year, bringing them to a 22-year high of 5.25-5.5%.