In an interview with CNBC on Thursday, St. Louis Fed President James Bullard reiterated that he would want asset tapering to be completed by the first quarter of 2022, as reported by Reuters.

Additional takeaways

“Skeptical inflation will moderate in 2022, perhaps higher than 2.5%.”

“Delta variant will peak at some point, message remains that economy has been able to adapt to the pandemic.”

“Quick end to taper allows optionality for rate hikes; if inflation moderates it can be delayed.”

“Continued high inflation will be a problem for everyone, particularly lower-income families, if it continues.”

“Real wages at this point are falling, lower-income families have no ability to hedge against inflation risk.”

“Fed is coalescing around a plan for taper.”

“Housing prices are a concern, Fed should not be complacent about it.”

Market reaction

The US Dollar Index is inching higher following these remarks and was last seen rising 0.15% on the day at 92.96.