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Wednesday, March 23, 2016

Bullard: Central bank can't drive the growth proces

Probably the most sensible comment I've ever heard from him...ever

  • Fed shouldn't hike when inflation expectations are falling
  • Fed is still accommodative
  • Wants Fed to edge towards more normal rates so is not stuck
  • Sees neutral policy rate of 2% or higher
  • Market pricing is more dovish than dot plot
  • Key question is if Sep medians are a promise
  • FOMC does not want median forecast to be commitments
  • Sees slow but good growth in 2016
Bullard continues to channel hop for his interviews.

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