Waller: Risk Management Approach Main Push Back To Cuts Priced

Waller comments from Q&A (quotes below shortened/paraphrased)

• Risk management approach in focus for pushing back on market pricing in rate cuts in 2H23: "From risk management point of view, have to ensure inflation doesn’t take back off. We’re going to have to keep rates higher for longer than we would normally say we would do from a Taylor rule or some policy rule."
• Data dependency to the fore: "Ever since September I’ve stopped giving very long forward guidance and just say whatever the data tells me what I’m going to do – when asked whether his remarks imply 25bp Feb and Mar then stop."
• Consistently hawkish language around labor market, finding that high job openings in JOLTS data are in line with business liaison and speed at which unemployed are finding new jobs.