- Conditions warrant faster balance sheet reduction
- Says she would support selling some MBS during balance sheet reduction
- Expects immediate effect of omicron will be relatively small
- Expects strong economic expansion to continue this year
- Expects some improvement in inflation readings later in the year as demand moderates and capacity constraints ease
So the question is: What is 'appropriate action'? I also tend to think that 3 or 5 Fed hikes won't make that much of a difference. It will come down to things like commodity prices and supply chains, not rates at 0.75% or 1.25%.