Fed's Waller: Spike in gas prices unlikely to cause sustained inflation
In an interview with Bloomberg TV on Friday, Federal Reserve (Fed) Governor Christopher Waller said that people will see a spike in gas prices but added that this situation is unlikely to cause sustained inflation.
Key takeaways
"If energy prices are unwound in a few weeks or a couple of months it will cause a problem for the Fed."
"If it lasts longer it could have a broader impact."
"The energy shocks of the 70s came in waves, and prices never came back down."
"Will find out today if the labor market is turning a corner."
"January job gains were concentrated, and that did not give comfort the economy as a whole was doing well."
"Expect January jobs number will be revised down."
"A coming hot PCE and a solid jobs report it would signal the Fed should wait."
Market reaction
The US Dollar (USD) Index continues to edge higher following these remarks and was last seen rising 0.25% on the day at 99.30.
