Fed's Waller sees 2.5% inflation this year
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