Fed's Christopher Waller favors faster pace of tapering asset purchases

"Inflation may complicate the FOMC's management of monetary policy in 2022," as inflationary pressures are more widespread than he initially expected due to supply bottlenecks and labor shortages, Federal Reserve Governor Christopher Waller said in a webcast discussion hosted by the Center for Financial Stability. That could lead the U.S. central bank to pick up its pace of tapering. "For my part the rapid improvement in the labor market and the deteriorating inflation data have pushed me towards favoring a faster pace of tapering and a more rapid removal of accommodation in 2022," he said. The basic shape of his outlook hasn't changed. He expects "gross domestic product to resume its robust growth not only in the fourth quarter of 2021 but also in the first half of 2022," assuming another COVID-19 variant doesn't arise during the winter. Overall, the economy has rebounded quicker than he expected a few months ago.