- Sees at least three rate hikes this year
- March is a reasonable date to start rate hike, balance sheet runoff should begin "soon after"
- There is a risk inflation is likely to be elevated for extended period of time
- Fed needs to respond directly, clearly, and aggressively
- A fast balance sheet runoff would be needed
- Full process of balance sheet runoff should be geared to end in "a couple of years"
This is pretty much the base case scenario for the debate in which I talked about earlier here. There isn't anything that stands out all too much from Bostic's remarks, so carry on as you will.
