Goldman ‘Impressed’ With Fed’s Inflation Moves, Waldron Says

The Federal Reserve is making the right moves to fight inflation, according to Goldman Sachs Group Inc.'s president.

"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." We expect them to continue to be aggressive in fighting inflation and we are impressed with what they are doing.

In January, Waldron said that the independence of the Fed has been damaged in recent years and that it is no longer credible in markets. He questioned the Fed's strength to act as an "independent, monetary policy engine that is doing what it thinks is right and not what's expedient."

Goldman's No.2 takes a rare swing at the Fed.

The interest rates were raised three times. Powell and his colleagues are trying to bring the inflation rate under control. The target range for the federal funds rate was raised to between 1.5% and 1.75% by the Fed in June.

The terminal rate is expected to be between 3% and 4%. We can see the economy growing from there if we end up at that location. The Fed is very focused on reseting the price of money in the economy.

Ann Marie Hordern and Alix Steel assisted.