Comments from Bostic:
- Suspects rates could rise in late 2022
- Substantial further progress on inflation has effectively been met
- In favor of balanced approach of Treasury and MBS taper at same rate
- Would be in favor of completing the taper in a shorter period than what was done in previous rounds
- He thinks Fed could start taper between Oct and Dec but open to moving it forward
- He's open to the idea that delta variant could mean policy will be adjusted
- Delta could lead to slower momentum
This is hawkish stuff from Bostic who has slowly been moving into that camp. The timing of the taper is shifting earlier but I think that ultimately it will be the pace of the taper that matters more.
