More from Fed’s Waller: If inflation fell to 2.5%, Taylor rule would say to cut rates

Still hopeful rate hike’s will slow spending, inflation

More from Fed’s Waller:

  • We can run our balance sheet down a total of $2 trillion to $2.5 trillion and keep reserves ample
  • If saw inflation coming down to 2.5%, Taylor rule would say to cut rates
  • We need to see how inflation progresses in 6 to 12 months, then see about cutting rates
  • We still have one rate hike penciled in, will be totally driven by the data if it happens or when
  • Higher long rates for whatever reason puts in tightening
  • If long rates go up and persist, that will do some of the Fed to work
  • Still seems to be more potential excess consumer saving than people think
  • Consumer spending has been surprising
  • Still hopeful rate hike’s will slow spending, inflation
  • Data shows job market can call the a reduction in job vacancies and not necessarily loss of jobs
  • Events in Middle East horrific, but hard to see much impact on US macroeconomy
  • Balance sheet reduction was priced in a long time ago. All Fed is doing now is fulfilling that expectation
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