- Policy should be above neutral by year end
- I'm not taking 50 bps off the table until inflation comes closer to Fed's 2% target
- Reduction in balance sheet equivalent to a couple of 25 bps hikes
- I'm optimistic the strong labor market can withstand higher rates
- Don't know how soon supply chain issues will abate
- Inflation is 'alarmingly high'
- Longer-run inflation expectations have moved up to a level consistent with underlying inflation a little above 2%
- I don't expect Q1 drop in GDP to be repeated
This is hawkish stuff with talk of 'several' 50 bps hikes coming against the 50/50/25/25 baseline that other Fed officials have endorsed. That said, Waller is a hawk so it's not entirely surprising.