Fed’s Waller Echoes Powell’s Inflation Forecasts

The United States Federal Reserve Governor Christopher Waller, the newest member to join the Fed’s board, said on Friday the U.S. economy will see strong performance this year as the economy reopens and more people gets vaccinated.

“I think the economy is ready to rip. Everyone is getting a lot more comfortable with having the virus under control and we’re starting to see it in the form of economic activity.”

Waller’s remarks came during a TV interview with CNBC.

He reiterated the point made earlier by the Fed Chair Jerome Powell that the upcoming rise in inflation will be temporary.

“Once the stimulus checks are spent, they are gone. Once the pent-up savings is spent, it is gone. There’s no further excess demand coming out of those things.”

Speaking about inflation, he said that the Fed wants it to be “on average around 2%.

“I don’t think anybody would be very comfortable if it got to three or three plus and stayed there for a while.”

 “There’s no reason to be pulling the plug on our support till we’re really through this.”