Comments from the Philly Fed President:
- It will soon be time to begin slow and methodical taper
- Expects GDP growth to come in around 6.5% in 2021 before moderating to about 3.5% in 2022
- Inflation should come in around 4% for 2021 and a bit over 2% for 2022
This is basically the consensus market and Fed view at this point. A rate hike is 80% priced in for Dec 2022.
As for his forecasts, I think it will be tough to get 6.5% this year as H2 slows on supply chain bottlenecks. That will also push up inflation in 2022.
More:
- Doesn't see potential changes in Fed leadership really changing the course of monetary policy
- He would support starting taper as soon as November and finishing by mid-2022
