11/08/2023

Fed's Waller Calls Q3 US GDP Growth a 'Blowout'

However, he said the labor market is cooling

Federal Reserve policymakers fresh from last week's decision to hold the policy rate steady are weighing strong economic data, some signs of a slowdown, and the impact of higher long-term bond yields as they consider if they will need to hike rates further to bring down inflation.

Third-quarter U.S. economic growth, at an annualized 4.9 percent rate, was a "blowout" performance that warrants "a very close eye when we think about policy going forward, Fed Governor Christopher Waller said on Tuesday.

An ardent advocate of aggressive Fed rate hikes to battle high inflation, Waller did not include a policy recommendation in his remarks to an economic data seminar at the St. Louis Fed. His presentation also noted signs that job growth was slowing, and what he called the "earthquake" wrought by higher and potentially growth-dimming long-term bond yields.

Please select this link to read the complete article from Reuters.