One month ago saying the price level had stabilized at a low level, St. Louis Fed chief Jim Bullard now says inflation is on the rise, and the FOMC is closer to its goals than at any point in the last five years.
The man who only months ago dissented from the dovish side, now says the "Fed faces a classic monetary policy challenge ... how quickly should the committee move to return monetary policy to normal." He's not a voter on the FOMC this year.
Ten-year Treasury yields tick a hair higher as his comments hit the wires, now up two basis points to 2.62%. There's more reaction on the short end, where June 2016 Eurodollar futures are off 5 points to 98.46, now pricing in about 125 basis points in rate hikes between now and two years from now.