Waller sees slowing inflation; would defer decision to next Fed meeting
Waller said reviewing CPI and PPI gives him a reasonably accurate read on PCE and he sees signs of slowing. He is willing to wait and defer a decision until the next Fed meeting.
Summary WALLER said that after reviewing CPI and PPI data he now has a reasonably accurate read on PCE inflation and is seeing signs of slowing.
He said he's willing to wait and be patient, give disinflation a chance and defer a decision until the next Fed meeting — waiting one meeting carries almost zero cost and is prudent risk management.
He would not name a firm target but said a three—month inflation rate of 2.8% would be acceptable; core inflation could fall materially after data revisions.