Fed's Waller: Economic Outlook, Interest Rates, and Inflation Target

Federal Reserve Governor Christopher Waller gave a speech discussing the economic outlook, noting that the pace of the economy appears to be cooling off, which is encouraging for progress on lowering inflation. Data for October showed a moderation in economic activity, particularly in consumer spending, manufacturing, and non-manufacturing activity. Waller mentioned that while the labor market is cooling off, it is still fairly tight. He also highlighted the progress made in inflation, with consumer price index (CPI) inflation for October being virtually flat. However, Waller emphasized that it is still too early to determine if the slowing in economic activity will be sustained and if the Federal Open Market Committee (FOMC) has done enough to achieve price stability. He will closely monitor future data to assess the strength of economic activity and inflation.