Jim Bullard Abandons Doves In Bitter Betrayal

Jim Bullard Abandons Doves In Bitter Betrayal

Someone may need to remind Jim Bullard what a "Jim Bullard" does. In remarks to CNBC Friday morning, Bullard delivered what might fairly be described as a hawkish take on the likely evolution of Fed policy, to the chagrin of risk assets. "I put us starting in late 2022," he said, of liftoff (clip below). "My forecast said 3% core PCE in 2021 and 2.5% in 2022."  
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11 thoughts on “Jim Bullard Abandons Doves In Bitter Betrayal

  1. They are talking dirty but I would be surprised if they did anything until they had some data from the fall, when schools open and extra unemployment aid expires. Could they taper in the fall- sure, but more likely it will be after their year end meetings to plan 2022. As far as raising rates- even late 2022 is an eon away- when they raise short rates is going to depend on the course of the economy and the virus.

  2. Tail wagging the dog. One guy speaks and the market spends the rest of the day dissecting as if it’s the only important information that matters for investments. Maybe I’m out of it, but it seems we’re living in a ‘mad mad world’. 24 hour news blows everything up as high as possible to capture ‘clicks’ and eyeballs at any cost. Reality has become only what the digital screen says it is.

  3. Markets (histrionic speculators) leading the FED by the nose again. We’ve seen this movie before. This was the key lesson of Atlanta, January 2019 and ever since. What’s new? Never mind that the bond market thinks this is all nonsense. The FED projects confidence while shaking in their boots.

  4. Wasn’t Bullard the one pandering to Trump and backstabbing Powell and the other governors by publicly saying the FOMC should have been more aggressive in their easing way back…? … if so, he seems like a self serving loose cannon to me….

  5. All that has happened in the last few days when taken in context is good damage control Everyone that read H’s….(last four posts) should take notice of a narrative change and make their adjustments accordingly.. The pendulum still swings and will continue if we do just that .I saw and predicted this but totally underestimated the reaction..Live and learn …

  6. Inflation hurts the bottom 50% (living paycheque to …) and hurts those living on fixed income/Social Security the most. And inflation generally helps those with financial assets/property thus exacerbating/widening the wealth gap. And yet the central planners
    want to let inflation run hot. I would speculate that any benefit from wage inflation (I’m for higher wages) still doesn’t help the substantial number of good people get ahead, that are living paycheque to paycheque. Would love to read a Heisenberg article on this issue. Thanks.

  7. I suppose there are two ways to approach wealth inequality.

    One is to promote policies that benefit lower and middle income groups.

    The other is to specifically beat the wealthy into submission. I suppose the must notable example being the French Revolution.

    I suppose either approach works. I guess the likes of Bezos, Murdoch, and Koch will decide how they want it. Keep promoting lies and paying off politicians — in a desperate attempt to maintain an unsustainable status quo — then that is a choice for option two.

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