I'm surprised at the size of the reaction to the comments from Bullard. He repeated his call for 100 bps in hikes by July 1 but sheepishly deferred to Powell as well.
Bullard is a voter this year but he's not a core Fed member and his comments frequently diverge from the Fed mainstream. He certainly doesn't speak for Powell and I don't see why any of this should last.
The focus right now has to stay on Russia-Ukraine until there's a stronger hint on what's coming.The mood today is improved on that with Lavrov talking diplomacy but the read-out from the Putin-Lavrov meeting doesn't sound like Russia's leader is too eager to engage diplomatically.
To illustrate, Lavrov told Putin he supports diplomatic efforts with US and allies.
“All right,” Putin responded.
Lavrov told Putin “I must say there is always a chance" for a deal that addresses Russia's security concerns.
So even though I think these comments from Bullard are a non-event, I'm not eager to buy a dip in the risk trade.
