Comments from the St Louis Fed president
- Says he wouldn't be surprised if 2021 GDP estimates were raised from +6.5%
- The US has a 'big economic boom going on'
- I would like to see more inflation data before changing my forecast. The data is very noisy
- I think inflation will remain above 2% in 2022
What's important here is that he said the Fed will tolerate inflation above 2% throughout 2022.
- It's tough to discern the signal from the noise with all the volatility in economic data
- We're certainly going to have to be nimble
- Labor market is tighter than is being represented
- Once people go back to searching for jobs, I'm hopeful they will be able to find them
- It's not clear to me that we should expect labor force participation to return to 2019 levels. Cites retirees who have done well on equities and housing
- Expectations of a million jobs per month have been 'hyped up', half a million is more realistic
- At heart I'm an inflation hawk
- We're going to have to allow higher inflation in the 'boom time' than we normally would have
- I will leave it up to the chair to determine when to start the taper talk
- Says a big reason for the taper tantrum was because taper talk came at the same time as a forecast downgrade for the economy
