When uber-dove Jim Bullard says it, you start to pay attention. Joining the chorus of Fed presidents calling for a tapering and subsequent rate hike, Bullard said “We will be able to get to a good consensus on the committee and get to a good wind-down process. It does seem that we are coalescing around a plan” to taper the $120 billion monthly purchases.
Bullard went on to rising inflation which exceeded the Fed’s expectations (but no one else’s) and even commented on potential asset bubbles in the housing market, referencing the Fed’s policy mistakes in 2005-2006 which made the GFC possible.
The market reacted by shedding 8 points, half of which it promptly regained.
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