Feds Bullard speaks at Wall Street Journal event
- The last time we had a run up in Covid cases in December/January, it did not impact the economy as much as expected
- There has been some pretty good macroeconomic outcomes despite the pandemic
- He thinks inflation will be more persistent than some people think
- Sees inflation at 2 1/2% to 3% in 2022 (last week he said that inflation would settle around 2 1/2% in 2022. So he is upping his talking point at least).
- Thinks inflation will come down but not as low as some people want
- Does not think there will be a taper tantrum in the markets
- Labor markets are improving and people will be matched up with jobs seven
- Believes the Fed should taper more quickly so the Fed can be prepared to react with rates in 2022
- Very clear that things have progressed more rapidly than the Fed had expected
- He is moderately concerned about the housing market
- We need to start thinking now about where we want to be in 2022
- We don't really need asset purchases at this point.
- Housing market has been resilient and strong giving another reason to get out of asset purchases
- Expects US labor market to add about 500,000 jobs a month. It is not easy to at 1 million jobs in a particular month.
