Comments from Richmond Fed hawk Jeffrey Lacker:

  • Firming of wage gains suggests inflation pressures might emerge this year
  • Fed needs to be careful not to overreact to events in China
  • Fed balance sheet should be unwound as quickly as it was built up
  • Fed doesn't need any more than $100B in excess reserves

Oh man, I'd love to put this guy in charge of the Fed one day. The Fed selling $100B in Treasuries a month would be a bloodbath.

Thankfully, Lacker is just around for comic relief.

This is how Lacker extrapolates wage inflation from the avg hourly earnings y/y data unless the Fed hawks come to the rescue.