The US dollar has given back some of its gains and stocks have trimmed losses after St Louis Fed President James Bullard took something of a victory lap on inflation.
The title of the presentation was 'The prospects for disinflation in 2023' and he said:
"During 2023, actual inflation will likely follow inflation expectations to a lower level as the real economy normalizes."
He was also upbeat on late 2022 growth.
"Real GDP growth now appears to have been stronger in the second half of 2022 than previously thought after puzzling readings in the first half of 2022," his presentation said.
We haven't seen huge moves in the aftermath of the comments -- Bullard is often ignored by the market -- but he's one of the most-hawkish Fed members and if he's growing more constructive, it's reasonable to expect the same from others on the committee.
