If shorter run expectations go up, that’s alarming and the Fed might have to take steps There is no way the Fed can go back to the small balance sheet of 2008 The Fed wants to run an ample reserves type system Does not want to go to a scarce reserve system Has not spoken to…
rsh about policy It’s crazy given recent data to be talking about rate cuts in the near future Waller is a highly influential member of the Board of Governors of the Federal Reserve. Nominated by President Trump and confirmed in 2020, he serves a term ending in 2030
He is widely known in macroeconomic circles for his sharp academic background and historically pragmatic, data-driven approach to monetary policy. His pragmatism is tilting to the hawkish side now. eg Michalowski