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Federal Reserve Bank of St Louis President.......>

US: Federal Reserve Bank of St Louis President James Bullard with some dovish
statements in the opening remarks and initial questions of Q&A session at the
ongoing MNI event in Tokyo:
- Current Fed funds rate of 1.50-1.75% already pressing against where the
neutral rate might be, which could be below 2.0%.
- The Italy crisis and surrounding market volatility serves as a reminder that
the current policy rate path is `priced for perfection`
- Fed is not behind the fact it is ahead of the curve. As a metric,
Bullard watching the flattening of the 1Y/10Y yield curve (as opposed to the
commonly used 2s10s), which he says has 100% accuracy in predicting recession
when inverted.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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