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(Reuters). Federal Reserve policymakers openly discuss the possibility of reducing their support for the economy faster than previously indicated. A top official urged a speedier wind-down in bond purchases while another suggested he wanted that conversation at the Fed’s next meeting.

Vice Chair Richard Clarida stated that he would be closely reviewing the data between now and December and that it might be appropriate to discuss increasing the rate at which our balance sheets are being reduced at that meeting.

The Fed started to reduce its monthly asset purchases of $120 billion earlier this month at a pace that would eliminate them completely by mid-2022. It also stated that it was ready to increase that rate if the economy warrants.

Clarida stated that “that will be something we consider at the next gathering”, pointing out the upside risk of already high inflation, and that the economy was “in a very solid position.”

Christopher Waller, Fed Governor, called Friday for Fed to reduce its bond purchases faster to make more space to raise interest rates. He said that the Fed would increase their rate of borrowing by as much as 1% in the first quarter of next year if there is high inflation or strong job gains.

Waller, speaking at the Center for Financial Stability New York said that the rapid improvements in the labor markets and the declining inflation data have led him to favor a faster pace for tapering and a greater removal of accommodation for 2022.

After the speech, he answered questions and argued for the Fed to double the taper pace in January so that it could be completed by April.

The Fed’s inflation rate is at its highest level in 30 years and the rapid pace of job increases have caused Fed policymakers to pause. James Bullard, St. Louis Fed President, and Waller were vocal advocates for a faster timeline. Clarida suggested Friday that such plans could be discussed by the Fed at its next policy meeting. This raises the possibility it might be implemented.

As President Joe Biden closes in on a decision about whether to retain Jerome Powell Fed Chair for another term or elevate Governor Lael brainard, tension is high. By Thanksgiving, a decision should be reached.

Waller’s comments earlier about favoring an outright decrease of Fed’s balance book helped raise the yield on 2-year Treasury notes, which are most sensitive to Fed expectations. Clarida’s subsequent comment that she was looking into a potential acceleration of taper at next month’s meeting also sent them up to the day’s high.

Trading in futures on interest rates reflects rising hopes that the Fed might raise rates before June.