Bullard on TV
- On jobs, you have to think about where the labor market will be at the end of the taper
- Fed is fine if inflation moderates quickly but we may need to put downward pressure on prices if inflation lasts longer
- QE purchases don't have much value right now
- Repeats that he would like to taper now and finish by the end of Q1
- The Fed needs optionality in the case that inflation doesn't moderate
The bond market continues to sell off with US 10-year yields now at the highs of the day at 1.356%.
If Powell delivers anything like what we've heard from Bullard, there will be carnage in equity markets.
