Fed's Waller 'Fully Supports' 75-Bps Rate Hike

The transcript discusses the need for policy tightening to restrict demand and bolster public confidence in reducing inflation. It supports a 75 basis point increase in the federal funds rate at the upcoming FMC meeting, aiming for a neutral level that neither stimulates nor restricts demand. The decision for July depends on incoming data, including retail sales, housing, and inflation expectations. Future policy adjustments will rely on economic data between July and the September FMC meeting, with a focus on achieving a 2% inflation target.

What is the significance of tightening monetary policy in relation to inflation?

How does the speaker assess the current economic conditions in relation to the federal funds target range?

What data releases are anticipated before the next FMC meeting, and why are they important?

What factors will influence the decision on the size of the interest rate hike at the July meeting?

What is the target inflation rate mentioned, and what signs is the speaker looking for?