Bulllard....I am so ready to tighten I can't wait
St. Louis Fed Pres. James Bullard is speaking, and says:
- US economic output expected to continue to expand through 2022
- Gross domestic income it measures of US economy shows it is growing
- GDI measure conflicts with the GDP, but is more consistent with observed robust labor markets
- Repeats that high inflation is straining Fed's credibility
- Repeats that Fed's forward guidance is helping US central bank move more quickly to get inflation under control
Bullard has been one of the more hawkish of the Fed governors, but has eased some of his hawkish rhetoric of late, mainly because the other Fed members have moved closer to his assessment of where policy should be going. Nevertheless he remains concerned about inflation , and likely still sees the Fed raising toward 3% by the end of the year. His comment on GDI implies the consumers still has the ammunition to keep growth positive despite what could be a technical recession with 2 quarters of GDP declines.