Fed's Waller: Don't want to raise interest rates too early and cause a recession, nor do we want to make mistakes by acting too late.

PANewsJul 13, 2026
#Macro
Although Federal Reserve Governor Waller stated that he does not wish to raise interest rates too early—lest it trigger a recession—he believes the labor market remains stable and that the Fed should avoid repeating the mistake it made several years ago: delaying its response amid rising inflationary pressures.

Waller warned that the current labor market is far less overheated than it was during the Fed’s rate hikes in 2022–2023, and that there are “credible reasons” to expect inflation to continue falling without further policy tightening.

However, he noted that the evidence businesses and investors rely on to anticipate declining inflation is insufficient to justify the Fed waiting—because by the time confidence gradually erodes, the Fed will be forced to hike rates more aggressively to catch up. “We cannot afford to ignore inflation until it vanishes entirely,” he said.

[PANews]

Source
Powered by ChatGPT
All You Need to Know in 10s
Your One-Stop Crypto Investment Powerhouse

Fed's Waller: Don't want to raise interest rates too early and cause a recession, nor do we want to make mistakes by acting too late.

PANewsJul 13, 2026
#Macro
Although Federal Reserve Governor Waller stated that he does not wish to raise interest rates too early—lest it trigger a recession—he believes the labor market remains stable and that the Fed should avoid repeating the mistake it made several years ago: delaying its response amid rising inflationary pressures.

Waller warned that the current labor market is far less overheated than it was during the Fed’s rate hikes in 2022–2023, and that there are “credible reasons” to expect inflation to continue falling without further policy tightening.

However, he noted that the evidence businesses and investors rely on to anticipate declining inflation is insufficient to justify the Fed waiting—because by the time confidence gradually erodes, the Fed will be forced to hike rates more aggressively to catch up. “We cannot afford to ignore inflation until it vanishes entirely,” he said.

[PANews]

Powered by ChatGPT
Scan QR Code to Explore more key information
One-stop financial research platform for Crypto Investors