Not that futures needed any help melting down this morning, but Jim Bullard just poured gas on the fire. Yes, Jim Bullard! The Fed president who never had a hawkish thought in his life.
"We were expecting an inflationary impulse, but this has been more than what we were initially expecting," says James Bullard. "The ideal path in my mind would be the 3% this year will be okay, and then we'll get it down to 2.5% next year and we'll converge to 2% from there." pic.twitter.com/i9vSio57GM
— Squawk Box (@SquawkCNBC) June 18, 2021
Then, he trashed the Fed’s most nonsensical policy: throwing $40 billion per month into the mortgage market when mortgage rates are already at all-time lows.
"I'm leaning a little bit toward the idea that maybe we don't need to be in mortgage-backed securities with a booming housing market and even a threatening housing bubble … we don't want to get back in the housing bubble game," says St. Louis Fed President James Bullard. pic.twitter.com/fDMkw9ckL9
— Squawk Box (@SquawkCNBC) June 18, 2021
Bulls better hope that ES can bounce at our next downside target: the 50-day moving average currently at 4174.
It appears that algos are finally being given the green light to (drumroll please) decline.
continued for members…
Sorry, this content is for members only.Click here to get access.
Already a member? Login below… |