Goldman Sachs president John Waldron says the Fed is making the right moves to tackle inflation - after saying the central bank had lost its credibility at the start of the year

John Waldron used to think that the Federal Reserve was doing a good job, but now he thinks that it's done a bad job.

In an interview with Bloomberg on Tuesday, he said he was "impressed" with the Fed's swift interest rate hikes, a reversal from his view earlier this year that the central bank had lost credibility in its ability to tame inflation.

"You're seeing the Fed move quite aggressively and in my opinion very appropriate 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."

The interest rates were raised in March. It raised rates by 50 and 75 basis points at its most recent meetings. At its meeting later this month, the Fed is expected to raise interest rates again.

"So far, so good, we expect them to continue to be aggressive in fighting inflation, and we are impressed with what they're doing, and we expect them to keep doing that."

A broad swath of commodities surged in the first half of the year as inflation hit 40-year highs. There are signs that inflation is about to show signs of cooling off, as prices for commodities like oil, metals, and grains have fallen.

If the Fed can raise interest rates to 3%, there is a chance of a soft landing.

We can see the economy growing from here if we end up there. The Fed is very focused on reseting the price of money in the economy.

Depending on an upcoming interest rate decision, the Fed funds rate could jump above 2% by the end of the month.