Fed Board of Governors Member Christopher Waller said on Friday that the US economy is “closing in” on maximum employment and, thus, he strongly supported the Fed’s decision to accelerate the pace of the QE taper, according to Reuters.
Additional Takeaways:
“Faster taper gives increased flexibility to adjust policy as early as spring.”
“The US economy is set to continue growing strongly at least through 1h 2022.”
“The Omicron variant is ‘big uncertainty’ for outlook.”
“Inflation is alarmingly high, persistent, and has broadened.”
“The baseline outlook is for inflation to moderate next year; watching expectations closely.”
“Omicron could slow recovery or exacerbate inflation… the Fed has to be ready ‘in the coming weeks’ to adjust as needed.”
“Rate hike will be warranted shortly after bond buys end.”
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