Bullard continues to hit the wires:
- He sees GDP growth bouncing back in Q2, on track for 3.5-4% growth
- His own forecast of a Q1 rate hike is data dependent
- Wage increases will follow an increase in inflation
The Fed is currently buying $35 billion of bonds per month and is tapering $10 billion per meeting. At the current pace of tapering the Fed will be buying $15 when it meets in October, if they taper $15B then the program will end there. Alternatively they could continue buying $5B until the Dec 17 decision. At the end of the day, it’s not a big difference to the Fed’s $4.3 trillion balance sheet.
