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%)