Fed's Waller Says More Tightening May Be Needed

The speaker reflects on a speech given in Frankfurt a year ago, expressing surprise that core inflation has not decreased as expected, remaining stable despite a significant drop in headline inflation due to energy and food prices. The speaker notes that while policy rates are affecting parts of the economy and the labor market remains strong, core inflation is stagnant, suggesting further policy tightening may be necessary. This situation presents risks, and the speaker questions whether the current economic narrative will hold in the future.

What aspect of inflation has surprised the speaker?

• Headline inflation has increased.

• Core inflation has decreased significantly.

• Energy prices have remained stable.

• Core inflation has not decreased as expected.

What has been the trend in headline inflation according to the speaker?

• It has remained unchanged.

• It has decreased slightly.

• It has increased due to energy prices.

• It has been cut in half.

What is the speaker's view on the labor market?

• It remains strong.

• It is declining.

• It is weakening.

• It is unpredictable.

What might be required to address the stagnant core inflation?

• Decreasing food prices.

• Increasing energy prices.

• Reducing policy rates.

• Further policy tightening.

What concern does the speaker express about the future economic narrative?

• It is irrelevant to current policies.

• It has already failed.

• It may not hold up going forward.

• It will definitely hold up.