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Bullard: It's the weather; economy is fine

  • The spate of soft data hasn't budged his strong outlook for the economy, St. Louis Fed chief tells CNBC. Formerly a fence-sitter leaning hawkish, Bullard titled dovish late last year - constantly reminding too-low inflation was just as much of a worry as what economic growth was doing. He's about-faced in 2014, now leaning hawkish and taking every opportunity to tell people it's probably the weather causing the recent slowdown.
  • He continues to see the jobless rate falling below 6% this year. As for declining labor force participation? It's a secular trend, not cyclical, he says.
  • As for rate hikes, he does back off a bit, telling the team he was previously one of two on the FOMC who thought rates might rise this year, but "I'm going to have to revisit that."
  • Last week's release of FOMC meeting transcripts gives us a window into the scoreboard on Bullard's crystal ball, and it's not wonderful as it shows him laser-focused on inflation and hawkish both before and after the Lehman collapse in 2008.
Comments (3)
  • RS055
    , contributor
    Comments (1896) | Send Message
     
    yup - makes perfect sense - at a Mad Hatter's Tea party. Umm..hmmm.
    28 Feb, 11:23 AM Reply Like
  • ilikemoney
    , contributor
    Comments (16) | Send Message
     
    This was the guy who said he relies on gut instinct when the data doesn't agree with what he wants it to be.
    28 Feb, 12:26 PM Reply Like
  • Ray Lopez
    , contributor
    Comments (1508) | Send Message
     
    Bullard --> Bull-ard --> Dullard --> A man who 'votes with his gut' --> a man who, like a weather vane, flip flops on dove vs hawk for inflation --> A man who blames the weather.

     

    Folks, and this is why we need to abolish the Fed. Go back to a fixed money supply, like, dare I say it, something akin to bitcoin. Go back to a gold standard. Go back to the era where growth was greater than today (late 19th century vs now). Where the money supply was not controlled by a handful of men like Bullard, and a woman, but by tens of thousands if not 100s of thousands if not billions of people, voting with their dollars.

     

    One-liner: crowd-source the Fed, abolish the Fed.
    1 Mar, 09:20 AM Reply Like
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