Greg had the comments from Bullard on Friday afternoon posted here, quite extensive and informative (on Bullard's own views at least):
- Summary: Bullard stayed away from the idea of raising more than 50 basis points, Although he stuck to the 3.5% end of year Fed funds target.
It was late on Friday, so reposting here ICYMI. Dow Jones / Market Watch also have a piece up, with some colourful remarks from Mr. B:
- “A lot of CEOs have come on TV and said ‘oh I have lots of pricing power and I can do whatever I want and make a lot of money’,” Bullard said Friday, in an interview on the Fox Business Network.
- “But I think some of them are going to get punched in the face here with the fact that consumers have to react” to higher inflation, he said.
- Households only have so many dollars coming into their bank accounts and they have to decide what to buy. They are going to choose the basic necessity rather than the luxury good, Bullard added.
Mike Tyson on plans to raise prices: “Everyone has a plan until they get punched in the mouth.”