- Volatile Asian equity prices should not be seen as signal of trouble ahead
- Rapid Chinese growth consistent with fundamentals, not a bubble
- Risk of sudden slowdown in China derailing global recovery is limited
- Expects US GDP to be back at pre-crisis level in Q3
- US firms will likely have to hire workers in remainder of 2010 to keep up with demand
- US market stress from Europe more reflection of worry than reality of global slowdown prospects
- Europe’s debt situation serious, unclear how will unfold
- Effect of flight to safety in US is like aggressive, successful monetary policy action
- Expect market concerns about Europe to remain for months, possibly years
- Worry about bank losses overstated because govts will bail out banks
Bullard’s bullish comments regarding global recovery will have helped lift risk sentiment a little further. EUR/USD is at session high 1.2255 at writing.
