Bullard: Asset Sales "Plan B"; Ukraine Crisis Not Leading Macro Issue

Bullard continues on CNBC - arguably not as hawkish on balance sheet policy as some of his colleagues (incl KC George this morning) who have advocated for active Fed asset sales.

• Says hikes/runoff are "relatively cheap from my perspective as a policymaker" - at this point they're not tightening policy, but removing accommodation.
• Bullard says would like runoff to steepen the yield curve.
• Fed hasn't decided on tactics; it's all "in the works". Would like to get passive runoff started in Q2 and some Plan B where can use asset sales if necessary to speed up runoff. "Exactly how that could work is an open question" but that could put more pressure on long-end of the curve. For now, he's "happy" to see passive runoff.
• Says US has one of the strongest labor markets it's ever seen; projecting unemp rate could go below 3% this year. Bullard says companies are "scrambling" for workers; expect to see that reflected in wages; says will show up in CPI as well.
• Says expects positive reopening impact on Q2/Q3 GDP. Says companies he's talked to unsure whether supply-chain constraints will ease this year, could last into next year.
• Re Ukraine-Russia: more of a concern for Europe than the US; have seen fighting in that area of the world. An important policy issue, but not necessarily a leading macroeconomic issue, at least at this point.