Fed Governor Christopher Waller said yesterday that his outlook is very much that the economy is “going to recovery”. And, “we will be able to pull back on accommodative monetary policy potentially sooner than others think.”
He repeated his “high hopes” for July and August job numbers, and expected the labor market to recover 85% of pandemic job loss by September. Fed could start to taper asset purchases in October if these two reports show 800k to 1m job growth each.
“My base case is that the inflation we’re seeing is somewhat transitory, that there will be some relief in the fourth quarter of this year on price pressures,” Waller added.
