(Reuters) – Federal Reserve Governor Christopher Waller said on Friday the central bank could aggressively reduce inflation if it can keep unemployment below 5 percent, but trade-offs will emerge after that.
“If the unemployment rate stays below 5%, I think we can deal with inflation very aggressively. Once it goes above 5, there are obvious pressures to start Make tradeoffs. If we don’t lower inflation, we’re in trouble,” Waller said after a speech at the Austrian Institute for Advanced Study.
The Fed should be aggressively raising rates while the economy “could take a hit,” he said.
