Comments from the Fed Governor
Waller has hinted at wanting to taper previously so his comments aren't a surprise but it's odd to see a Governor drift so far from the core of the FOMC. He has previously said he wants to see one more strong jobs report, so that's nothing new.
- We don't look at virus data unless it spills over into the economy
- The economy doesn't necessarily follow the virus that closely
- We definitely have made progress on inflation
- Would like to start tapering early this fall
- Whether a taper takes six months or eight months wouldn't have much price effect
- Tapering MBS first 'is not going to happen'
- All my business contacts tell me that businesses have pricing power for the first time in a decade and they intend to use it
I wonder if we get an FOMC statement in Sept that's similar to today but with dissents. Though it's remarkably rare to get a dissent from a Governor.
Waller said he wants to see 100% of jobs recovered before he would want to consider a rate hike. There are other Fed members who want to see even more than that before they get hikes.
