Feds Waller speaks on CNBC
- inflation running well above 2% target
- if we get 800,000 2 million jobs in the next two months we will have regained 85% of the jobs lost. That is a significant further progress
- could make an announcement on taper by September
- if next to jobs report come in as a strong as last one, can taper by September; if not, may need to push it
- labor market should really take off starting in August, September
- don't think Delta variant will have big impact on US directly
- even worse rise in cases, US economy did extremely well
- the Delta variant is not going to sidetrack the US economy
- he expects inflation to cool off in later part of the year
- There is an upside risk to inflation but it is really not his baseline view
- We all think inflation will call off by October November
- Inflation expectations are well anchored
- We should do taper early and fast so the Fed can be in position to raise rates in 2022 if needed
- Can easily envision if the next two jobs report come in at 800,000 or 1 million could taper in October
- There is no reason you'd want to go slow on the taper
- don't see the exact timing, speed of taper having a big impact on financial markets
- he would be in favor of tapering MBS purchases faster than treasuries
Generally speaking, the governors have been more dovish while the Hawks have been amongst the regional bank presidents. Waller's more hawkish comments are a departure from that generalized trend. His comments are more in line with Fed's Bullard.
Waller is a Gov. which means that he has a vote on the FOMC policy board each year. Fed's Bullard is not a voting member in 2021 but will be a voting member in January 2022.
