- Economy is on a really good track
- Inflation is more persistent
- Price increases have been broadening
- Says she has 3 hikes penciled in
- The case is really strong to wind back accommodation
- Fed need to recalibrate stance because inflation is above where it needs to be
- Should be able to run down the balance sheet much faster than last time
- Says she would like to set a path for the balance sheet
- It's clear to her that inflation is too high and that the labor market is strong and that the Fed needs to take action
- It will be a challenge to keep the economy on a positive trajectory
The market is pricing in a +80% chance of a hike in March and she is on board with that.
