Waller on CNBC
- High inflation in CPI report wasn't surprising
- Expects to see moderation in house price increases in the coming months
- Prefer 50 bps in May and possibly more in June and July
- March CPI is 'pretty much the peak'
- Fed will continue with its plan for rate hikes and reducing accommodation to get inflation under control
- We are not in a Volcker moment, economy doesn't need a shock
- If inflation keeps going, so will we
- Consumers have a lot of money in their bank accounts
- There's still a fair bit available in people's accounts to absorb higher prices
The comment on 'peak inflation ' should get some attention. The market is moving on the idea that inflation will be solved with 2.5% rates or something in that range. So while the Fed has just started the cycle, the market is already looking beyond the end of the cycle.
