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Bullard moves to hawk camp

  • Skeptical of the recovery and firmly in the dove camp not long ago, St. Louis Fed chief has turned strongly bullish on the economy. In an interview ahead of a speech today, Bullard brushes aside talk the quickly falling unemployment rate is sending a false signal about the strength of the economy.
  • “The bottom line is then you should take the signal from the unemployment rate decline as a signal of an improving labor market and an improving economy ... “The economy is much closer than normal than what we’re used to thinking about over the last five years ... Further declines in inflation would put pressure on Fed to take some sort of policy action."
  • Admitting (how kind) he has no model of how the harsh winter is affecting this year's economy, Bullard - instead relying on his "gut instinct" - says the weather is behind the soft numbers. Even if it's not the weather, he says, a few bad prints over the last few weeks wouldn't change his overall strong outlook.
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Comments (13)
  • Philip Marlowe
    , contributor
    Comments (976) | Send Message
     
    Bullard worries me. It seems like he has decided what to do (end QE) and is pushing in that direction no matter what happens or what data comes about. I happen to agree with him that the economy is doing better than feared and most of the recent weakness is due to weather, but it is still very worrying to see a FED voting member not pay attention to the data.
    19 Feb, 12:31 PM Reply Like
  • xxavatarxx
    , contributor
    Comments (2259) | Send Message
     
    Maybe due to diminishing returns?
    QE has kind of run it's course.
    19 Feb, 01:57 PM Reply Like
  • Michael Clark
    , contributor
    Comments (8601) | Send Message
     
    We need to end QE. QE is socialism for the banks and the corporations. It needs to be stopped ASAP.
    19 Feb, 02:45 PM Reply Like
  • wyostocks
    , contributor
    Comments (7739) | Send Message
     
    He hasn't a frigging clue and that is scary considering that he is a policy maker. Thank God he is not a wartime general.
    19 Feb, 12:36 PM Reply Like
  • Atticvs Research
    , contributor
    Comments (334) | Send Message
     
    "Sceptical of the recovery and firmly in the dove camp not long ago".

     

    He never really came across as a dove but rather a pseudo dove and today he's proving it. No surprises, nothing to see here, move along.
    19 Feb, 12:56 PM Reply Like
  • fred1724
    , contributor
    Comments (64) | Send Message
     
    Unemployment number is manipulated just like the CPI.
    19 Feb, 01:58 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8385) | Send Message
     
    Does anyone really think these Fed clowns have the slightest idea what they are doing?
    19 Feb, 02:14 PM Reply Like
  • june1234
    , contributor
    Comments (2556) | Send Message
     
    With all the data they have access to going with his "gut instinct" is not inspiring. Then again the IMF today said global recovery was weak after calling for 3 to 4% global growth several weeks ago. They probably just draw straws.
    19 Feb, 02:17 PM Reply Like
  • minecanary
    , contributor
    Comments (427) | Send Message
     
    I'd be ecstatic if Bullard had decided to end QE and drove to it, no matter what. The numbers are never going to say it's time unless they are goosed by some other source. Just get it through your heads - if 5 years and $4 trillion wasn't enough to do the trick, more is not going to help.
    19 Feb, 02:31 PM Reply Like
  • xxavatarxx
    , contributor
    Comments (2259) | Send Message
     
    USA today had a few pieces about this last week after Yellen was nominated.
    Their take was tapering is still happening in March unless something drastic happens to changer Yellens mind.
    19 Feb, 02:36 PM Reply Like
  • Tack
    , contributor
    Comments (13040) | Send Message
     
    With excess reserves at massive levels, it really makes no difference whether it's continued or cut, as regards near-term economic impact, you so many wait the word, breathlessly, as if it did.
    19 Feb, 02:50 PM Reply Like
  • quabbin
    , contributor
    Comments (127) | Send Message
     
    Shakespeare?
    No......Muir?
    19 Feb, 07:14 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11092) | Send Message
     
    Great! Federal Reserve chiefs rely on their gut instinct. No wonder they get so much wrong. My personal opinion is that they asked him to try to give confidence to the market by spouting more bologna.
    20 Feb, 02:40 AM Reply Like
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