Fed's Waller Drops Easing Bias as Inflation Hits 3.8%
Updated
Updated · CNBC · May 22
Fed's Waller Drops Easing Bias as Inflation Hits 3.8%
12 articles · Updated · CNBC · May 22
Christopher Waller said he is no longer leaning toward gradual rate cuts and would support removing the Fed’s easing bias, putting cuts and hikes on more equal footing.
April inflation accelerated to 3.8% from 3.2% in March, while Waller said price data is “not headed in the right direction.”
The shift comes as growth stays firm: U.S. GDP rose 2.0% in the first quarter, the Fed sees 2.4% growth this year, and the Atlanta Fed is tracking above 4% for the second quarter.
Sticky inflation and stronger energy prices are also reshaping markets, with strategists favoring value stocks over growth as investors diversify away from concentrated AI-driven technology bets.
How will the new Fed chair's focus on a different inflation metric reshape America's economic future?
Is the US economy's fate now tied more to Middle East oil shocks than to Federal Reserve policy?
In a hot economy, can the AI sector's massive spending boom outlast the historic investor shift to value stocks?