Prior to the quiet period of the November Fed meeting, Federal Reserve Governor Warren, who is seen as a hawkish official by the outside world, suggested that the Fed can afford to wait for interest rate decisions and can wait to observe progress in reducing inflation before making a decision.

As a board member of the Federal Reserve, Waller has long held voting rights in the FOMC meetings of the Federal Reserve's Monetary Policy Committee during his tenure. In his speech on Wednesday, October 18th, Eastern Time, he pointed out that he will weigh the recently released data to determine whether the Federal Reserve has successfully reduced inflation, or whether the economy still has the resilience to push up prices and create upward pressure on inflation.

Waller said, "As of today, it is still too early to draw conclusions. Therefore, I believe we can wait and observe how the economy evolves before taking clear action on the path of policy interest rates

Waller said that if the real economy weakens, the Federal Reserve will have more room to take a wait-and-see attitude towards further interest rate hikes, allowing the recent rise in long-term US bond yields to play a role.

But if the real economy continues to show potential strong momentum and inflation appears to stabilize or accelerate again, even if long-term interest rates have recently risen, further tightening of (monetary) policies may be necessary

In addition to the rise in US bond yields, Waller also mentioned that the economic data of the past few months has brought "quite positive" news about inflation.

On the same day as Waller's speech, earlier this Wednesday, a dovish official with voting rights at this year's FOMC meeting and Philadelphia Fed Chairman Huck also mentioned that a decision should be made after a period of time.

Huck said he believes it is possible for the Federal Reserve to wait until early next year to determine whether the rapid rate hikes of the past 20 months have been sufficient to curb inflation.

Due to the lagging effect of monetary policy, Huck believes that despite recent data indicating a strong recovery in the labor and consumer markets, higher borrowing costs will still drag down the economy.