Tight Labor Market and Stubborn Inflation Plague US Economy, Says Fed Governor

Christopher Waller testifies before the Senate Banking, Housing, and Urban Affairs Committee during a hearing on his nomination to be member-designate on the Federal Reserve Board of Governors, in Washington, on Feb. 13, 2020. Sarah Silbiger/Getty Images

A top Federal Reserve official stated his support for more interest rate hikes as a tight labor market, persistent inflation, and uncertain credit conditions continue to threaten the U.S economy.

Federal Reserve Governor Christopher Waller told the University of California Santa Barbara County Economic Summit on May 25 that the Fed should not stop raising interest rates until there is clear evidence that inflation is cooling after it unexpectedly rose to 4.9 percent last month, causing concerns over lack of progress.