Fed Reserve chair candidate Chris Waller smacks down Powell's 'driving in the fog' claim

Core Viewpoint - Federal Reserve governor Christopher Waller challenges Chairman Jerome Powell's assertion that the government shutdown is obscuring the Fed's economic outlook, emphasizing the need for continued policy action despite uncertainties [1][2][6]. Group 1: Federal Reserve's Economic Outlook - Waller argues that the Federal Reserve possesses sufficient data to make decisions, countering Powell's claim that the lack of key economic data due to the government shutdown is hindering clarity [6][8]. - Powell expressed concerns during a Federal Open Market Committee meeting, stating that the shutdown is creating a "fog" that complicates the Fed's understanding of the economy [3][5]. - Waller insists that the Fed should not halt decision-making processes and should continue to implement necessary policy measures, such as interest rate cuts [2][6]. Group 2: Inflation and Labor Market Concerns - Waller predicts that inflation will decrease and return to target levels, despite current high rates, indicating confidence in the Fed's ability to manage inflation [9][11]. - The labor market is identified as a significant concern by Waller, who also highlights the potential impact of artificial intelligence on economic productivity in the near future [11][12]. - Waller expresses optimism about the future effects of AI, suggesting that substantial changes in productivity may be observed within 12 to 24 months [11][12].