Fed Governor speaking on BBGTV said US Core PCE Is “Quite High” and added that the Fed should take towards a more hawkish policy in the next couple of meetings. He said 3%-4% Rate `Is Not My Base Case’
Feds Bullard Speech Highlights
- Core PCE is quite high
- Fed should take towards a more hawkish policy in the next couple of meetings
- Markets are past the taper tantrum.
- The Fed could move further faster
- Fed taper increased to $30 billion per month would open the door to rate increase end of Q1 2022
- Tacking hawkish Lead now could be an advantage by smoothing out the normalization process in doing less later
- Does not see neutral rates rising beyond pre-pandemic levels
- Even if inflation comes back down the Fed is in a good place for next year.
- Can keep rates lower
- Bullard has two hikes priced in for next year.
- Agrees with the market assessment
- Fed could move on rates before the taper concludes and could also allow for the runoff of the balance sheet after the taper
From The TradersCommunity US News Desk