Fed's Bullard: Inflation is a 'little bit low'

Bullard on CNBC

• Low core PCE inflation is 'making me a little bit nervous'
• I would like to take this opportunity to recenter inflation expectations around 2%, which I think would pay dividends
• The Dallas Fed trimmed mean is at 2%
• We're probably at the point where we want to be assessing the data
• Inflation expectations look a little light and I don't think that's a good place to be
• Sees 2.5% GDP growth this year

There's a pretty strong message from the Fed that's shaping up. They're not going to cut but they're also not going to hike unless the economy is really cooking. However the dove trap is that once the good news comes, the Fed starts hiking again and abandons all this talk about letting inflation run hot.