Fed's Waller: Fed won't respond to inflation as much as it would have in the past

"We don't want to move too quick chasing inflationary ghosts," Fed Governor Christopher Waller said on Thursday and added that the Fed won't respond to inflation as much as it would have in the past, as reported by Reuters.

Additional takeaways

"Higher asset prices aren't necessarily a bubble."

"Watching housing prices carefully but some of this is driven by fundamental changes in demand."

"Expecting 2.25% or 2.5% inflation for next 2 years."

"If we were to see 4% inflation, month in and out, would get very concerned."

"Fed won't raise rates until it sees inflation above target for a long time."

"I haven't seen anything that should cause a reversal in forward guidance as of now."

"We had a massive productivity boost during COVID, I don't see that going away."

Market reaction

The US Dollar Index clings to modest daily gains at 90.85 after these comments.