Feds Bullard speaking.

Feds Bullard speaking.
  • Core PCE is quite high
  • Fed should take towards a more hawkish policy in the next couple of meetings
  • Markets are past the taper tantrum. The Fed could move further faster
  • Fed taper increased to $30 billion per month would open the door to rate increase end of Q1 2022
  • Tacking hawkish Lee now could be an advantage by smoothing out the normalization process in doing less later
  • Does not see neutral rates rising beyond pre-pandemic levels
  • Even if inflation comes back down the Fed is in a good place for next year. Can keep rates lower
  • Bullard has two hikes priced in for next year. Agrees with the market assessment
  • Fed could move on rates before the taper concludes and coul also allow for the runoff of the balance sheet after the taper

Bullard is one of the more hawkish members of the Federal Reserve.