(Reuters) – The Federal Reserve must be ready to accelerate its reduction of bond purchases and increase interest rates faster than they currently anticipate due to persistently high inflation, and strong job gains. Fed Governor Christopher Waller stated Friday.

Waller stated that “the rapid improvement of the labor market, and the degrading inflation data have pushed us towards favoring an faster pace of tapering as well as a quicker removal of accommodation by 2022,” in prepared remarks made at the Center for Financial Stability New York.

As part of its emergency efforts to nurse the economy through the pandemic, the central banks began to cut down on the amount it purchases in assets. It was purchasing $120 billion per month through this program.

The government expects that it will reduce its purchases by half to zero in June next year. The policymakers indicated that they would only raise the interest rate from near zero once this is complete.

However, an inflation rate that is at an all-time high of 30 years and rapid job growth have given Fed policymakers cause for concern. James Bullard, the St. Louis Fed President, has been most vocal in calling for an acceleration.

This tension arises as President Joe Biden is about to make a decision whether Jerome Powell will continue as Fed chair or if Governor Lael Brainard will be promoted to that position.

Waller was quick to show some thrift, but others who were on the rate-setting panel continued to urge patience. High inflation will likely be temporary even if it lasts for longer than anticipated.

Waller stated that all shocks are temporary and eventually fade away. However, the Fed shouldn’t respond to shocks. But sometimes, it responds as it should… appropriate monetary policy responds.

Bullard stated earlier in the week that he supports speeding up taper and ending purchases by March to give more flexibility on when interest rate riseoffs can take place.

Even the policymakers that were previously more positive about persistently high inflation levels now admit that a 2022 interest rate hike is likely.

Waller admitted that he was also surprised by the “large, persistent” economic effects of the pandemic. Inflation pressures were becoming stronger and more prevalent than expected and will continue to do so into 2022.

Waller also reiterated that the Fed’s balance sheets should be reduced eventually. He argued for a gradual, predictable roll-off similar to last.

Next Fed meeting Dec. 14-15