Bowman says she would be very comfortable starting tapering, preferably in November.

Reuters reports that Federal Reserve Governor Michelle Bowman said Wednesday that would be “very comfortable” with starting to withdraw some of the US central bank’s support for the economy as early as next month, citing his concerns about inflation and asset bubbles.

“I’m aware of the remaining benefits to the economy from our asset purchases are now likely to be outweighed by potential costsBowman said in his remarks prepared for delivery to South Dakota State University.

Key comments

Very comfortable with starting to narrow bond purchases this year, preferably in november.

Particularly concerned that asset purchases are raising valuations, or that Fed policy remains flexible and poses risks to inflation expectations.

The benefits of the Fed’s asset purchases now probably are offset by costs.

If expansion continues as expected, will support a rate of reduction that would end purchases by mid-2022.

Expect steady progress toward the Fed’s inflation and employment targets in the coming months.

The Fed’s Tools Are Not Adequate To Address Labor Supply Issues.

He doesn’t expect employment to fully return to pre-pandemic levels anytime soon, for reasons unrelated to monetary policy.

Inflation will decline as supply bottlenecks are resolved.

There is a significant risk that supply-related price pressures may last longer than expected.

Salary increases and other investments in employees possibly increase inflationary pressures.

Some bankers comment on concerns about a possible housing price bubble and risks to financial stability.

If elevated inflation readings continue, an imprint on long-term inflation expectations can be seen.

Anchoring inflation expectations is an important condition for meeting monetary policy objectives.