Bullard blames weather

All those PhDs and computer models running around at the Fed and it comes down to the weather? The economy continues to improve, a hawkish-sounding St. Louis Fed boss Jim Bullard tells Bloomberg radio, blaming the string of weak data of late on the brutal winter.

He expects 3% GDP growth this year and the unemployment rate to fall to 6% by the end of the year, much quicker than he previously forecast. Inflation, though is the "wildcard," he says, expecting it to turn up towards the Fed's 2% target.

The Fed needs to be careful about changing the pace of the taper (faster or slower, one assumes) as it would send a "powerful signal" to the markets.

More: He would scrap the 6.5% unemployment rate threshold in favor of more "qualitative" guidance; the Fed chief should hold press conferences after every FOMC meeting.

Treasury prices remain under pressure, TLT -0.4%, and the 10-year yield up three basis points to 2.76% (as comparison, Spain is at 3.65%, Italy 3.73%)


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Comments (7)
  • wyostocks
    , contributor
    Comments (9115) | Send Message
    Someone should point out to Mr. Bullard that it is winter and snow and cold always occur this time of year. Perhaps in the ivory tower in which he lives it is always 75 and sunny 365 days a year.
    12 Feb 2014, 11:59 AM Reply Like
  • bbro
    , contributor
    Comments (11234) | Send Message
    "All those PhDs and computer models running around at the Fed and it comes down to the weather? '


    Easy to criticize....like the regular (?) kids that make fun of the smart kids...
    12 Feb 2014, 12:00 PM Reply Like
  • Meatball Bob
    , contributor
    Comments (66) | Send Message
    It's funny how few people give the weather credit when things go well.
    12 Feb 2014, 12:00 PM Reply Like
  • fred1724
    , contributor
    Comments (67) | Send Message
    Yeah, the unemployment rate will fall quicker than expected -it's an election year. The CPI is ALSO managed so it doesn't reflect the real inflation on such minor things as FOOD!
    12 Feb 2014, 12:07 PM Reply Like
  • Jack Hutchison
    , contributor
    Comments (523) | Send Message
    @ Fred: Wait! You forgot healthcare. Premiums are skyrocketing, choices limited, copays increased, and coverage debased.


    Now, about those taxes. Obama promised 98% would pay no new taxes.


    Pinocchio had a shorter nose.
    12 Feb 2014, 01:55 PM Reply Like
  • june1234
    , contributor
    Comments (4477) | Send Message
    Don't forget the "epic, mind boggling, catastrophic , ice storm of historical proportions" hitting the south where car lots,as is the case across the country, remain full of unsold cars .
    12 Feb 2014, 12:32 PM Reply Like
  • quabbin
    , contributor
    Comments (127) | Send Message
    This has been one of the best climbing seasons in years.
    Ice is fat in NH!
    Any climbers here on SA?
    12 Feb 2014, 06:45 PM Reply Like
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