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.

How does the speaker describe the current labor market?

What is the speaker's outlook on the story of inflation going forward?