Federal Reserve (Fed) Governor Christopher Waller said on Friday, he still believes a 50-basis points (bps) March rate hike is a possibility if the economic data comes in stronger.
Key quotes
'Strong case' for half-point hike in March if incoming data indicates economy still exceedingly hot.
Need 'concerted action' to rein in inflation.
US rates should be increased a full percentage point by middle of this year.
In wake of Ukraine attack, it's possible a more modest tightening is appropriate.
Fed should start trimming balance sheet no later than at July meeting.
Caps on balance sheet runoff should be large.
Do not see the need for asset sales anytime soon; MBS sales could be considered down the road.
Would support having no caps on MBS redemptions.
I believe we have met fed's maximum employment goal.
'Far too high' inflation is 'alarming,' Fed needs to 'act promptly'.
Expect the US economy to continue expanding at healthy rate.
Supply bottlenecks, labor shortages to diminish later this year.
Hopeful that with appropriate monetary policy, inflation will come down significantly by year end.
Market reaction
The US dollar is attempting a minor bounce on the hawkish comments from the Fed Governor while gold price is capping its renewed upside to trade at $1,908, as of writing.