Economics
Fed’s Waller Nods to Economic ‘Collateral Damage’ as Rates Rise
- Fed governor describes interest rates as a ‘brute-force tool’
- Officials trying to minimize damage while cooling off prices
Christopher Waller
Photographer: Bess Adler/BloombergThis article is for subscribers only.
The Federal Reserve is doing all it can to avoid “collateral damage” from raising interest rates, a “brute-force tool” that can act as a “hammer” on the economy, Governor Christopher Waller said.
“When you have to use a brute-force tool, sometimes there’s some collateral damage that happens,” Waller said Monday at a Fed Listens event in Nashville that was also broadcast virtually. “We’re trying to do this in a way that there’s not much of it, but we can’t tailor policy.”