Waller Rejects Calling Fed's Decision "Pause": Market Has Already Reacted

BlockBeats News, July 30 — Federal Reserve Governor Christopher Waller stated that since the June meeting, financial markets have already reflected much of the Fed's tightening policy effects. Therefore, he does not agree with describing the decision to keep rates unchanged this time as a "pause." Waller said: "I would not call today's decision a 'pause' in any sense. If you insist on labeling it as a 'pause,' the performance of financial markets actually suggests the opposite." Since the Fed's mid-June policy meeting, yields on U.S. 2-year and 10-year Treasury bonds have both risen by approximately 20 basis points. Waller pointed out that during this period, financial markets have not "paused" their adjustments but have continuously repriced based on inflation data and economic growth performance. On one hand, inflation data has influenced market expectations; on the other hand, strong economic growth has driven both nominal and real interest rates higher. He stated: "Today, the Fed did not explicitly adjust the policy rate, that much is true. But I believe this is merely the beginning of the policy story, not the end." (Jin10)