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Bullard Sticking To His Guns

FED
  • Unsurprisingly similar comments from Bullard so far, speaking for the third time in four days.
  • Alluding to 1994 when the Greenspan Fed increased the policy rate by 300bps, that’s the kind of thing we have to be thinking of here. It worked very well and reestablished the 2% inflation target in the US in subsequent years and the economy didn’t go into recession [hence his dot of 3.00-3.25% for 2022 revealed on Fri].
  • The FOMC see neutral between 2-2.5% and from there should probably go a little bit above that.

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