Federal Reserve Governor Christopher Waller recently challenged Chairman Jerome Powell’s perspective regarding the limitations of current economic data. While Powell expressed concerns that economic indicators are too limited due to factors such as the government shutdown, Waller urged the Federal Reserve to continue easing monetary policy despite these information gaps.
Waller Rejects the ‘Fog’ Narrative
Speaking with FOX Business host Larry Kudlow, Waller dismissed the idea that the Fed should halt or significantly slow its actions because of uncertain data. He emphasized that “the fog might tell you to slow down, but it doesn’t tell you to pull over to the side of the road.”
Powell’s Perspective on Economic Data Limitations
During a Federal Open Market Committee (FOMC) meeting on Wednesday, Chairman Powell noted that the government shutdown had restricted access to key economic indicators, making it challenging to assess the economy’s true condition. He remarked, “What do you do if you’re driving in a fog? You slow …”
Looking Ahead
Despite these concerns, Waller encourages continued monetary easing to support economic stability and growth. He suggests that waiting for perfect clarity before acting could hinder effective policymaking.
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