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Fed BullardSt Louis Fed President Bullard playing the role of captain obvious today. He quipped that I am probably the most dovish member of the FOMC and offered equity valuations may be stretched among other gems.

“The current level of the policy rate is appropriate given current macroeconomic data,” Bullard said in a speech at Truman State University. Bullard has forecast no more rate hikes through 2020.

Some rather obvious highlights from Fed's Bullard

  • Fed funds rate is appropriate, inflation unlikely to rise in 2017
  • A further lowering of inflation is unlikely to spark higher inflation
  • Income inequality is still widening, with top 1% capturing a larger share
  • US labor market probably as good as it gets
  • The stock market is up and equity valuations may be stretched
  • I am probably the most dovish member of the FOMC
  • Concerned by disconnect between market and Fed's dot plot
  • inflation expectations uncomfortably low

With wisdom like this where could things go wrong?

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