BNP's Paul Mortimer-Lee said the Fed's......>

US VIEW: BNP's Paul Mortimer-Lee said the Fed's "too-hawkish rhetoric too early,

and too little attention to inflation expectations, are the main reasons why

core inflation is nearer to 1% than 2%. It's the Fed's fault."

- He added that the "taper tantrum lowered inflation expectations a lot, and the

2015 and 2016 rate hikes both came when data were signalling a rise was

inappropriate."

- He said too that US "inflation expectations are not at a level that is

consistent with hitting 2% inflation - we reckon break-evens would need to be

2.5% to be consistent with that; we're well short."

- He added also that the "Fhe Fed is a poor inflation forecaster and its

reaction function is foggy, hence the need to heavily flag its moves. Bond

rallies after rate hikes question the wisdom of the hikes."