Highlights from the interview:
- says in interview that raising rates in March is 'quite reasonable'
- 'misguided' to call the number of rate hikes we will need; it will depend on data
- inflation is north of Fed's 2% price stability goal
- labor market is roaring, except on the one metric of labor force participation
- ending bond buying earlier than planned would not be worth potential market disclocations it would cause
- don't want to raise rates while still buying bonds
- I expect inflation to stay high for much for 2022, but to moderate
- expect continued labor market gains
- could start shrinking balance sheet after one or two rate hikes, certainly by end of year
- pace of balance sheet reduction can be faster than last time, but should be predictable, not meeting by meeting
I don't see anything in this that adds anything at all to what we have already heard from the plethora of Fed officials we have had speak in past days.
