One more good jobs report will be sufficient to be able to start tapering
Comments from the Fed Governor
Waller has hinted at wanting to taper previously so his comments aren’t a surprise but it’s odd to see a Governor drift so far from the core of the FOMC. He has previously said he wants to see one more strong jobs report, so that’s nothing new.
- We don’t look at virus data unless it spills over into the economy
- The economy doesn’t necessarily follow the virus that closely
- We definitely have made progress on inflation
- Would like to start tapering early this fall
- Whether a taper takes six months or eight months wouldn’t have much price effect
- Tapering MBS first ‘is not going to happen’
- All my business contacts tell me that businesses have pricing power for the first time in a decade and they intend to use it
I wonder if we get an FOMC statement in Sept that’s similar to today but with dissents. Though it’s remarkably rare to get a dissent from a Governor.
Waller said he wants to see 100% of jobs recovered before he would want to consider a rate hike. There are other Fed members who want to see even more than that before they get hikes.
