Fed’s Bullard live on Bloomberg tv: US economy isn’t that fragile
- Policy has always been data dependant
- QE isn’t a straight line to zero
- We got some weaker data which allowed for a delay
- US economy isn’t that fragile
- Transparency can’t now be reversed
- Inflation is low and we can be patient on policy
- QE can’t be seen as ineffective after June and September meetings
- No taper, small taper was a borderline call
That’s an important line as it can wipe out expectations of a high taper number. Bullard also said that as far as the markets go what’s the difference between $5-10bn taper?
- Weak employment and mixed data argued for no taper
- There’s a lot of uncertainty still when tracking the economy
Off to a break now.