Waller Flags Very Optimistic Outlook

Fed Governor Waller tells BBG television that he didn't move his dot forward in the June SEP.

• Waller notes that there are a lot of things to consider surrounding the tapering question, with a wide range of views evident within the FOMC re: matters surrounding that process. Waller would like to see the tapering process completed before the Fed hikes interest rates, while conceding that tapering could take place ahead of his initial expectations.
• Waller also highlights that he is sympathetic to the idea that the Fed should taper MBS purchases first, as he notes that the housing market is "on fire."
• He describes his outlook as "very optimistic," although notes that the labour market "hasn't quite come back," even with the economy performing "much better than expected."
• Waller points towards a preference for market-based inflation measures over their survey-based counterparts.