Fed's Bullard discusses economic outlook
Fed's Bullard is due to speak at 1:20 PM ET on the economic outlook.
Bullard has been more hawkish generally. He last spoke on November 13. At that time he said
- Sees room for US unemployment to improve substantially
- Monetary and fiscal policy have been very effective
- Execution of risk-based health policy critical
- should get resources to households hit hard by virus
- baseline is that further stimulus will be approved to help more targeted group of people
- change in TIPS yields show market faith and Fed hitting inflation target
- almost all of US GDP can be produced even with coronavirus circulating
- low take-up of Fed facilities not a measure of success
- Fed liquidity facilities are working as planned
- Current pace of asset purchases has been effective, policy in a very good place.
- Even if Fed emergency programs are shut down at the end of year, markets would know they can be reopened, trust Fed's willingness to act as backstop
- decentralized US response more flexible than national edicts, will be adequate to contain virus
- investment will pick up substantially as vaccine nears, probability rises pandemic will end
- Fed still "not thinking about thinking about" raising interest rates, still a long climb for economy
- financial stability not a key concern in midst of pandemic
- vaccine very good news, could and pandemic in 2021
