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Krugman: What Walsh "didn't say" is more important than what he "said"
"We have a normal Federal Reserve Chair." Krugman believes that Waller did not signal a rate cut, did not mention balance sheet reduction, and abandoned alternative inflation metrics, demonstrating a traditionally hawkish stance unresponsive to political pressure. The biggest contradiction lies in the fact that while Waller emphasizes short-term interest rates as the core tool and opposes unconventional policies, at the same time, the Treasury's Besant is advancing a long-term bond purchase plan, which in essence is quantitative easing.

