NY Fed president John C Williams in a New York Times article
The New York Fed president John Williams in a New York Times article says:
- the Fed will grapple with faster bond buying taper
- the latest variant of the coronavirus could prolong the bottlenecks and shortages that have cause inflation to run hotter than expected
- it is still too soon to know how omicron variant will affect the economy
- if the version of the virus leads to another wave of infections, it could exasperate disruptions out of cause prices to rise at their fastest pace in three decades
- Risk with the new variant is that it will continue that excess demand in the areas that don't have capacity, and will stall the recovery in the areas where we actually have the capacity.
Feds Williams is the president of the New York Fed and as such as a permanent voting position on the FOMC. He did not explicitly endorse a faster tapering process which chair Powell has signaled at his Capitol Hill testimonies this week, but would likely follow along with the Fed chair.