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Seeking Alpha 2022-05-10 17:41:42

Fed isn't counting on supply chain resolution taming inflation, Chris Waller says

"At this point, I don't care what the reasons are. Inflation is too high and my job is to get it down," Federal Reserve Board Governor Chris Waller said during a discussion with Minneapolis Fed President Neel Kashkari sponsored by the Economic Club of Minnesota. It "would be great" if supply chain issues get resolved, but Waller isn't counting on it. "We're shooting for what everyone calls a 'soft landing'," which he sees as achievable. "We're trying to get the labor market back into some sense of equilibrium," he said. "Right now it's out of whack." The Fed doesn't need to crash the economy to get inflation under control, Waller said. Unlike during Paul Volcker's tenure, the U.S. economy is currently strong. "it's time to raise rates now when the economy can take it," he added. "Front load it, get it done," then the Fed will assess how it's working.

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