Waller on CNBC

  • Sees 6.5% GDP growth this year
  • Says 'economy is ready to rip'
  • All the fundamentals are in place for good, strong fundamental growth
  • We're making up for lost ground
  • We're still down 7-8 million jobs from a year ago
  • There's no reason to start pulling the plug on stimulus
  • Temporary surge in inflation will not last

Waller said that 'once the stimulus checks are spent, it's over, it's done'. That's a poor understanding of spending multipliers.

  • We're happy to let inflation rise above 2%, so long as inflation is anchored
  • We're not going to sit here and say 'ok that's fine' if inflation takes off
  • The dot plot is kind of a problem, we shouldn't be projecting outcomes