KOR
▲ Christopher Waller, Governor of the U.S. Federal Reserve
Christopher Waller, a governor at the U.S. Federal Reserve, stated that the central bank may need to raise interest rates in the short term if the upward trend in core inflation persists.
According to Bloomberg, Governor Waller said at an event in New York on July 13 (local time) that "if the core inflation data released this week comes in high again, the Federal Open Market Committee (FOMC) will need to consider tightening monetary policy in the short term."
The U.S. Department of Labor is scheduled to release the June Consumer Price Index (CPI) data, including the core CPI, on July 14.
Regarding the current state of the U.S. economy, Governor Waller assessed that the labor market remains stable and consumer demand is maintaining a solid footing.
However, he evaluated that monetary policy is at a crossroads due to inflationary pressures stemming from tariff policies, rising energy prices, and the expansion of AI infrastructure.
"No matter how you slice the data, inflation has been trending upward this year," he said, pointing out that the core Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, rose 3.4% over the year through May.
Governor Waller expressed a cautious stance, stating, "I would be very pleased if the core inflation figures came in very low, but given the upward trend in the first half of this year, we need to see low figures continue for several months to determine if inflation is moving in the right direction."
He added that it is still reasonable to expect such results, and in that case, he would support maintaining the current interest rate freeze.
Governor Waller also mentioned the criticism the Fed received for its delayed response to inflation during the early stages of the COVID-19 pandemic in 2021–2022, emphasizing that "the FOMC must be prepared to tighten monetary policy."
(Photo: Getty Images)
※ Please note: This article was translated by AI and may contain errors.
