Comments from the KC Fed President
- The timing of the taper is not mechanically connected to timing of any policy rate adjustment
- Road ahead to normalization is likely to be long and bumpy
- Pre-pandemic jobs market many not be best guidepost for assessing maximum employment
- Temporary factors related to pandemic are likely contributing to the current tightness in the labor market
- Expects economic growth to step down but remain robust
- Delta variant could delay the recovery
The headline needs a bit of fleshing out but it sounds like she's in the camp with Bullard and Weller that wants to taper sooner rather than later.
There's been no immediate reaction in the bond or FX market to her comments.
