WASHINGTON—If inflation keeps rising at its current pace in coming months rather than subsiding as expected, Federal Reserve policymakers may need to adopt “a more aggressive policy response” next year, Fed Governor Christopher Waller said on Tuesday.
For now, Waller said in remarks to the Stanford Institute for Economic Policy Research, he continues to believes the economy has seen the worst of the most recent coronavirus wave, that labor and other supply shortages will ease over time and that “the escalation of inflation will be transitory,” with price increases moving back to the Fed’s 2 percent goal next year.
