Fed's Bullard: Inflation breakevens suggest Fed is being too hawkish

Eren Sengezer FXStreet

Federal Reserve Bank of St. Louis President James Bullard continues to speak in London with the key quotes, via Reuters, found below:

Don't think in situation where need to be preemptive, we can wait and see with respect to future policy
U.S. is not moving away from 2 percent growth
The FOMC has been largely correct that inflation was returning towards target over recent years
Disconcerting that inflation gone away from 2 percent
We have been raising rates against a backdrop of relatively weak growth, downside inflation surprises
Financial market reaction to March tightening has not been good, would have expected yields to rise with policy rate
U.S. is trying to go it alone among global central banks, which you can do but need strong data behind you
Need to question how far can push yield curves given global environment
Inflation breakevens suggest fed is being too hawkish

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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