Bostic: Fed Should Consider How Fast To Taper

Atlanta Fed’s Raphael Bostic said on Monday night interview on Bloomberg TV that faster taper would give the US more optionality, but “we still have a COVID economy, he added.

Given the mixed comments and Wall Street’s latest mild reaction, as S&P 500 Futures printed 0.14% intraday gains following the comments from the Fed official, gold prices paused corrective pullback around $1,809 at the latest.

Important Quotes
Powell reappointment, Bostic said, takes uncertainty out of the Fed, which is helpful.

Biden made a ‘fine choice’ in Powell and Brainard.

Could be open to pulling forward another rate hike if appropriate in his dot plot for 2022 but also open to pushing them back too depending on how pandemic plays out.

Asked about supply chain constraints, says contacts still do not expect them resolved before summer of 2022 or later.

Hearing a lot about shortages of truckers.

Longer-run inflation expectations remain anchored, suggesting no erosion in confidence in the fed’s approach.

Not convinced we need to have pre-pandemic employment levels to be considered maximum employment.

Has no trips to Washington on my calendar.

Asked if he would be open to one of the board openings, says those decisions are out of his hands.

We should be considering how fast we execute the taper.

On the inflation side expects the numbers to continue coming in strong.