Feds Bullard adds to his hawkish sentiment

Bullard wrong
  • unemployment rate will be be below 4% by Q1 2022
  • expects upward revisions to November nonfarm payrolls. This is a very tight labor market
  • sticking with forecast for two rate hikes in 2022
  • faster taper would create option out he to do more rate hikes if inflation doesn't dissipate
  • labor market participation not the thing to look at one deciding if have reached maximum employment
  • want to get soon to live meetings on rate hike possibility
  • with rapid changes in data, Fed may need to respond meeting by meeting
  • growth will slow it next year, but will still be super rapid amid productivity gains, better pandemic control
  • economy's adaption so far to Covid 19 suggests we will be able to handle omicron variant
  • inflation is partly from supply shot, partly increase in demand