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 (5597) | Send Message
     
    yup - makes perfect sense - at a Mad Hatter's Tea party. Umm..hmmm.
    28 Feb 2014, 11:23 AM Reply Like
  • ilikemoney
    , contributor
    Comments (17) | 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 2014, 12:26 PM Reply Like
  • Ray Lopez
    , contributor
    Comments (1828) | 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 2014, 09:20 AM Reply Like
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