Central Banks
Fed’s Waller Says Fears Over a Few Banks Should Not Alter Policy
- Waller says Fed using separate tools for financial stability
- Tighter conditions so far are a continuation of prior trends
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Federal Reserve Governor Christopher Waller said it’s not clear that recent banking strains will lead to significantly tighter lending conditions in the US, adding that officials should not allow worries about a few lenders to interfere with their inflation fight.
“Let me state unequivocally: The Fed’s job is to use monetary policy to achieve its dual mandate, and right now that means raising rates to fight inflation,” Waller said Friday. “I do not support altering the stance of monetary policy over worries of ineffectual management at a few banks,” rebutting the argument by some critics that the Fed should take into consideration the losses on banks’ balance sheets spurred in part by higher rates.