Fed's Bullard speaking at MNI event in Tokyo....>

FED: Fed's Bullard speaking at MNI event in Tokyo

- Suggest Fed should be cautions to prevent yield curve inversion

- Sees policy as neutral and inflation expectations as low

- Hard to see much higher yields without higher inflation expectations

- Thinks Fed should "go with the data" rather than risk inverting the yield

curve (1y-10y)

- Fed hit inflation target in 1995-2012 period, but inflation expectations

lowered since then

- Thinks neutral rate likely to remain low

- Any adjustment to IOER / Fed Funds range seen as technical not policy

- No final decision on terminal size of balance sheet

- Inflation targeting itself may have reduced correlation between unemployment

and inflation