Fed's Bullard: US economy will continue to grow above trend this year and next
|St. Louis Federal Reserve President James Bullard, who on Friday called for a dramatic increase in the Fed's overnight lending rate to more than 3% this year, is crossing the wires with the following comments dripping through:
- Russia's war will mean less globalization, more fragmentation around the world.
- Direct macroeconomic effects on US economy from Russia's invasion is not that large.
- Could easily be that Europe is pulled into recession as a result of war.
- We've seen these kinds of oil prices before, didn't cause a recession in US.
- US economy will continue to grow above trend this year and next, labor markets will continue to improve further.
- It's not as if we are a little bit over on the inflation target; we are way over.
- All indications are that inflation will go up in the spring.
- High inflation has necessitated 'all of us' to think about how fast we need to move.
- We will have to move faster than what we are used to.
- We have to think bigger.
Bullard's messaging remains as hawkish as ever. After Powell’s comments Monday, Bullards said yesterday that the Fed needs to move aggressively to curb inflation and that he thinks 50 bp moves would “definitely be in the mix.”
''The plural "50 bp moves" is clearly not a base case, yet'', as analysts at Brown Brothers Harriman noted, ''but Bullard is certainly pushing hard for it,'' as well a balance sheet runoff to start ASAP.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.