Comments from Bostic:

Comments from Bostic:
  • Suspects rates could rise in late 2022
  • Substantial further progress on inflation has effectively been met
  • In favor of balanced approach of Treasury and MBS taper at same rate
  • Would be in favor of completing the taper in a shorter period than what was done in previous rounds
  • He thinks Fed could start taper between Oct and Dec but open to moving it forward
  • He's open to the idea that delta variant could mean policy will be adjusted
  • Delta could lead to slower momentum

This is hawkish stuff from Bostic who has slowly been moving into that camp. The timing of the taper is shifting earlier but I think that ultimately it will be the pace of the taper that matters more.