Dovish stuff from Bullard
- Fed needs to tread carefully to sustain expansion
- Market-based inflation expectations point to inflation being below the Fed's target in 2019 and in next 5 years
- Treasury curve has flattened significantly. Meaningful, sustained inversion would send bearish signal
- Changes to monetary policy will owe to new data and not normalization strategy
That last line is interesting because it says that the hiking cycle wasn't about data but was more about getting away from zero. He's not ruling out hikes here by saying it's the end of 'normalization', he's saying that hikes will be due to rising inflation (which he doesn't see).
