The New Bullard? First Fed Official Calls for March Rate Hike, Asset Sales

Waller is from the St. Louis Fed, same as Bullard.

Federal Reserve: Christopher J. Waller

Christopher J. Waller took office as a member of the Board of Governors of the Federal Reserve System on December 18, 2020, to fill an unexpired term ending January 31, 2030.

Prior to his appointment at the Board, Dr. Waller served as executive vice president and director of research at the Federal Reserve Bank of St. Louis since 2009.

MSN: Fed's Waller: Rate hikes warranted "shortly after" March end of bondbuying.

...An interest rate increase will likely be warranted "shortly after" the Federal Reserve ends its bond purchases in March, with inflation "alarmingly high" and the job market near maximum employment, Federal Reserve Governor Chris Waller said on Friday.

Bloomberg: Fed’s Waller Says March FOMC Meeting ‘Live’ for Rate Liftoff

“My outlook is that it’s a very likely outcome that it could happen in March,” Waller said. “It would take something like severe disruption from omicron to delay labor market improvement or keep unemployment from falling, to keep March from from being a key date to think of for liftoff.” In addition, Waller also argued in favor of the Fed starting to shrink its massive balance sheet within one or two meetings of rate liftoff by allowing maturing securities to run off.

I joked that if crude goes up, it'll be one or two days before a Fed official comes out to say a March rate hike is on the table. That was correct, we've got the first call two days after the FOMC policy statement.

The market hasn't seen this comment and maybe it's nothing. Or maybe the market comes back next week realizing that, as in November, Powell absolutely screwed up by making outrageously dovish comments that almost seem maliciously designed to screw bullish investors, but are probably explained by a lack of communication skills combined with an irrational fear of upsetting markets.

Update: I'm back to fully short in light of this news.