Fed's Waller: Spike in gas prices unlikely to cause sustained inflation

Eren Sengezer FXStreet

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.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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