Waller Emphasizes Fed's Primary Focus on Prices

On August 28, Federal Reserve Chair Waller stated that despite better-than-expected PCE and CPI data this summer, there has not been a significant improvement in the underlying trend of inflation. He pointed out that market prices reflect a belief that price stability will be achieved and assured that the market's judgment is correct. Waller emphasized that with inflation rates above 2%, the Fed's primary focus should be on prices. His remarks responded to criticisms of his streamlined communication strategy, with economists and market participants arguing that the strategy lacks a clear articulation of the recent economic and monetary policy outlook. Waller further noted that price stability will not be achieved automatically, and inflation will not necessarily return to target on its own; achieving price stability is the Fed's responsibility. It is expected that Waller will not answer questions posed by on-site central bank officials and economists.