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