Comments from James Bullard:
- Labor market performance today is above average and exceeding normal performance levels
- Lower long term rates and lower oil should provide tailwinds for economic performance
- Global market recession fears from weaker European economy were overstated
- Market-based measures of inflation expectations have rebounded since mid-Oct
Bullard comes off as very flaky and lacking any credibility since he said on Oct 16 that “a logical policy response at this juncture may be to delay the end of the QE.” He will take audience and press questions later and someone needs to take him to task.
On market-based measures of inflation expectations, which essentially points to 5-year breakevens, I wouldn’t qualify the 12 basis point bounce since his comments as much of a ‘rebound’.
5 year breakevens
Now he’s back talking about hiking rates despite low inflation.
