Fed's Bullard: Our QE policy is 'about right' for now

Author: Adam Button | Category: Central Banks

Comments from Bullard:

  • There may be more inflationary pressure in 2021 than usual
  • Not reasonable for 2nd wave to dominate forecasts
  • Fatality rates from virus unlikely to reach March/April levels
  • Fed can afford to 'wait and see' on policy and economy
  • Inflation could rise to 2% as soon as next year
I think it's highly likely that inflation will be at 2% of above in Q2 of 2021 as a vaccine is rolled out and there are extremely easy year-over-year comps on gasoline and clothing. The Fed can look through that but I wonder if the bond market will get jittery.

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