Fed's Waller says 3 rate hikes in 2022 are a good baseline position

  • Says if inflation remains elevated there could be 4 or 5 rate hikes (on the other hand, if it falls there could be less than 3)

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  • favours a rate hike in March
  • Could also permit the balance sheet to run off faster - could be less need to raise short term rates
  • does not support a 50bp rate hike in March
  • inflation has stayed higher for longer than any of us thought it would
  • once inflation is back down to 2.5% rapid rate hikes would no longer be necessary
fed waller

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