- We are not comfortable where we are with elevated inflation
- Slack in the labour market is significantly diminished
- Time is getting closer to when we will move away from exceptional forward guidance
These are decidedly hawkish comments, the kind that signal a rate hike early in the 'middle quarters' of 2022, if not sooner. The bigger question is how much they can hike before the economy recoils in a big way, particularly housing.