Goldman Sachs PresidentJohn Waldron is "impressed" with the Fed's swift interest rate hikes.- Waldron previously said the Fed lost credibility when
inflation was surging but it wasn't raising rates. - "I think it's important to reset the price of money in the
economy , which is something the Fed is very focused on," Waldron said.
Goldman Sachs President John Waldron $4 of the
In $4 on Tuesday, Waldron said he was "impressed" with the Fed's swift interest rate hikes, a reversal from his view earlier this year that
"You're seeing the Fed move quite aggressively and in my opinion very appropriately to get on top of what's significant inflation building in the economy, clearly trying to front load a lot of the moves, policy moves, to try to deal with inflation," Waldron said.
The Fed started raising
"We at $4 are impressed with what they're doing, and we expect them to continue to be aggressive in fighting inflation, and I'd say so far, so good," Waldron said.
Inflation has been raging, $4 as a broad swath of commodities surged in the first half of the year. But since then, prices for commodities like oil, metals, and grains have fallen and there are early signs that inflation is about to show signs of cooling off.
Ultimately, Waldron sees the potential for the Fed to stick a soft landing if it can raise interest rates to the mid 3% range.
"Were we to end up at that place, we can see the economy resetting and being able to grow from here. I think it's important to reset the price of money in the economy, which is something the Fed is very focused on.
The effective Fed funds rate currently sits around 1.5%, and could jump above 2% by the end of this month depending on an upcoming interest rate decision.