Federal Reserve Governor Christopher Waller cautioned against raising interest rates too soon to fight inflation, saying the central bank should wait for more data. He noted that inflation has spread beyond energy tariffs, citing artificial intelligence as a key driver keeping prices above the Fed's 2% target. Waller warned against repeating the 2021 mistake of responding too late, but also against reacting too quickly, emphasizing a deliberate approach. He said a credible case exists for inflation to fall, but an equally plausible scenario could require tighter policy. Waller stressed that well-anchored inflation expectations do not excuse inaction, and he wants to see several months of lower core inflation before considering rate changes.