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Bullard speaks. Are markets listening?

  • The St. Louis Fed chief is all over the place today - a TV interview, a speech, and a press conference - sounding the alarm over rate hikes, which he sees starting in Q1 of 2015. Investors and even some at the Fed are "stuck" in 2010, he says, and don't realize how close the central bank is to hitting its targets for unemployment and inflation.
  • Responding to a question about why the yield curve remains below the median forecast of future rates presented by the FOMC last week: "I think investors should be listening to the committee, they are not." It seems central planners aren't pleased when markets have their own idea of what prices should be.
  • Ignoring the Fed even more today, the short end of the curve is flat and yields are lower at the long end, the 10-year Treasury down 3 bps to 2.53%. TLT +0.6%
  • Previously: Bullard: Forget about Q1 GDP report
  • ETFs: TBT, TLT, TMV, TBF, EDV, TMF, TTT, ZROZ, TLH, SBND, DLBS, VGLT, UBT, TLO, TENZ, LBND, TYBS, DLBL
Comments (10)
  • tom_t
    , contributor
    Comments (259) | Send Message
     
    Time to take him to the woodshed. Tomorrow, another Fed chief will make some soothing comments, and we'll go get another drink of Kool-Aid.
    26 Jun, 03:58 PM Reply Like
  • Rich in NJ
    , contributor
    Comments (28) | Send Message
     
    I pay attention to the FOMC's minutes and what Chairperson Yellen says in her press conferences. Everything else is interesting, but not dispositive.
    26 Jun, 04:16 PM Reply Like
  • sbrncra
    , contributor
    Comments (155) | Send Message
     
    quick, hurry, run to the currupt banks for your 2% moving to 3%, lol
    yeah, he's doing a great job, lol, look at the economy over 8 years, lol
    put you money overseas, lol the best we have is american biz by americans!
    example, fracking, tesla,, ge, etc..
    26 Jun, 04:30 PM Reply Like
  • Financial Insights
    , contributor
    Comments (945) | Send Message
     
    LOL
    26 Jun, 09:52 PM Reply Like
  • SharkDude
    , contributor
    Comments (550) | Send Message
     
    Obviously not. It is clear PPT is in full effect. Market was in free fall today. No bids. No only was the slide halted but we got everything back. But PPT stops just before futures go positive. That would be too obvious. So our average up day is up 50bps and the average down day is down 5bps! Not a coincidence people!
    26 Jun, 04:36 PM Reply Like
  • Jolly_Rancher
    , contributor
    Comments (546) | Send Message
     
    The market is perfectly rational. Higher energy prices. Higher interest rates. Ring any bells?
    26 Jun, 06:06 PM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    the only reason to go public is because it's not going to happen. "yet another futile attempt to talk rates higher"...and in so doing making matters worse already bankrupt State and Municipal borrowers.

     

    The Fed has a plan...(taper)...they're sticking to it. I like that and think it's a major reason why the market is continuing to hit all time highs.

     

    We absolutely are in a recession as well and I think we have been for over a year now. We'll see how bad the 2nd quarter shakes out as well...i've been long treasuries for the duration of this double dip...got hit hard by Crazy Ben...but held tight because it was hard to seed how a complete 180 on policy "out of blue" was going to be good for growth going forward...and indeed it wasn't.

     

    to the Fed's credit they saw an inflation shock coming and tried to head it off at the pass...in the long run we are all better for for tapering anyways.

     

    But clearly the zero bound rate policy will remain in effect for many, many, many years to come. I think someone needs to tell this voting member of the FOMC that such statements in public is in fact fear mongering on his part and need to cease and desist immediately.

     

    "Now is not the time to be the comment section on Zero Hedge."
    27 Jun, 01:12 AM Reply Like
  • peter623
    , contributor
    Comments (14) | Send Message
     
    Sometimes I long for the days of Volcker, when you had to interpret monetary policy from the daily actions of the Fed. All of these Fed members-Bullard,George, Fischer and the rest need to remember that their job is to worry about employment and inflation, not to run around the country giving speeches and expressing their own views as if they are speaking for the group as a whole.
    27 Jun, 04:14 AM Reply Like
  • MartinGale7
    , contributor
    Comments (84) | Send Message
     
    Six years ago we thought the world was ending. Five years ago we couldn't believe that Central Banks were trying this experiment called QE. If someone had have told you then that the Fed would STILL be performing QE and monetising goverment debt five years later we would have thought they were stupid or not informed. Likewise it will be a very long time before we see a rate rise. This Fed sees it there duty to keep ultra-lose monetary policy until every economic indicator is perfect. We will all wait a very long time for that.
    27 Jun, 04:24 AM Reply Like
  • lords
    , contributor
    Comments (28) | Send Message
     
    Feds are worried about the stock market and high yield bond mkt which are grossly over priced. They do not want to be blamed for they failed policies. They know they will be blamed so they want come and tell people to be careful but cannot be very explicit other then send signals Like this.

     

    Investors deserve to lose this time if they are not lisenting and not blame anyone else.
    28 Jun, 06:27 PM Reply Like
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