New York Fed President John Williams said, “we’re still quite a ways off from maintaining the substantial further progress we’re really looking for in terms of adjustments to our asset purchase program.” And, “I just don’t think the time is now to take any action.”

“We have to be thinking ahead, planning ahead, so I do think it makes sense for us to be thinking through the various options we may have in the future,” Williams added.

Williams was “very positive” about the economic look. “I expect the economy will adapt to the rapid recovery and we’re going to see very good jobs growth and expect to see really strong GDP growth this year and seeing good growth next year,” he said.

Dallas Fed President Robert Kaplan reiterated that ” it would be wiser sooner rather than later to begin discussions about adjusting our purchases with a view to taking the foot off the accelerator gently, gradually, so we can avoid having to depress the brake down the road.”

“At this stage, as it’s clear we are weathering the pandemic and making progress, I don’t think the housing market needs the level of support that the Fed is currently providing,” he added. “I would love to see sooner rather than later a discussion of the efficacy, for example, of those mortgage purchases.”

Philadelphia Fed President Patrick Harker said “we’re planning to keep the federal funds rate low for long.” He added, “but it may be time to at least think about thinking about tapering our $120 billion in monthly Treasury bond and mortgage-backed securities purchases.”

“We have to be careful in removing accommodation so that we don’t create any kind of ‘taper tantrum,'” he emphasized. “And that’s why we need to communicate very early, very often what we’re going to do.”

Fed’s Beige Book report noted that the national economy expanded at a “moderate pace”, “somewhat faster” than the prior reporting period. Several Districts cited the “positive effects” of increased vaccination and relaxed social distancing measures. Overall, “expectations changed little, with contacts optimistic that economic growth will remain solid.”

Two-third of Districts reported “modest employment growth” while wage growth was “moderate”. Businesses expected “labor demand will remain strong, but supply constrained, in the months ahead”. Overall price pressures “increased further”. Businesses anticipated facing “cost increase and charging higher prices in coming months.”

Full report here.