Christopher Waller is a member of the Federal Reserve Board of Governors. Governors have a vote on the Federal Open Market Committee.
Posts with the highlights are here as a recap ICYMI:
- More from Fed's Waller: We are ready to stop high inflation if we have to
- More from a Fed's Waller: If inflation expectations rise, you will see Fed action
- Fed's Waller: Will favor earlier liftoff if inflation runs considerably above 2% well into 2022
For the full text of his speech, link is here:
From the final paragraphs, bolding mine:
- Based on my outlook for the economy, however, I do not expect liftoff to occur soon after tapering is completed. The two policy actions are distinct. I believe the pace of continued improvement in the labor market will be gradual, and I expect inflation will moderate, which means liftoff is still some time off.
- That said, as I mentioned earlier, if my upside risk for inflation comes to pass, with inflation considerably above 2 percent well into 2022, then I will favor liftoff sooner than I now anticipate. A major consideration will be my judgment about whether inflation expectations are at risk of becoming "unanchored"-rising substantially and persistently above 2 percent. My FOMC colleagues and I will be watching all of the data carefully in the coming weeks and months and will adjust policy as needed to help ensure the U.S. economy continues to recover from the effects of COVID, and that we continue to make progress toward our economic goals.
