(Finance) – “The general picture is that so far the US economy is adjusting well to higher interest rates needed to curb inflation. But inflation remains quite high, and therefore more needs to be done“. He stated this Christopher Wallera member of the US Federal Reserve Board of Governors, at an Arkansas State University event.
“Although economic activity slowed in 2022, I expect the Fed will have to maintain tight monetary policy for some time to further slow activity in 2023 – he continued – This is what I believe is needed to bring supply and demand into better alignment and lower inflation towards the Federal Open Market Committee’s (FOMC) 2% target )”.
Waller recalled that “some believe inflation will come down quite rapidly this year. That would be a welcome outcome. But I see no signs of this rapid decline in economic data and I’m ready for a longer fight to bring inflation below our target.”
The economist explained that “we are seeing that (the Fed’s) effort begin to bear fruit, but we have to go further. And it could be a long struggle, with higher interest rates for longer than some expect currently”.