Waller's 'Improvement' Still Leaves Core Inflation At 3.3%, Above Fed's Goal
Waller's own speech puts real GDP growth at 1.8% in the first half and monthly hiring near 60,000 jobs.
- Core PCE inflation is 3.3% and headline PCE 3.7%, both above the Fed's 2% target.
- Real GDP grew 1.8% in first-half 2026, and Waller expects a bit above 2% this year.
- Job growth averaged 60,000 a month through July while unemployment fell to 4.1%.
Why it matters: Improvement measures direction, not arrival; 3.3% core inflation stays 1.3 points from the Fed's 2% goal.
Federal Reserve Board - Speech by Governor Waller on the economic outlook ↗ · Sep 3, 20269/3/26 · Updated Sep 3