Fed's Bullard: Soft landing is feasible in the US

Eren Sengezer FXStreet

"Markets have taken on board probabilities around a changed fiscal stance as well as the more aggressive Fed and expect inflation to come under control in quarters and years ahead," St. Louis Federal Reserve President James Bullard said on Friday, per Reuters.

Additional takeaways

"Fed has considerable institutional credibility compared with its 1970s"

"The current US situation may fall under the rubric of credible disinflations, which do not have large output costs."

"Soft landing is feasible in the US if the post-pandemic regime shift is executed well."

Market reaction

These comments don't seem to be having a significant impact on the US Dollar's valuation. As of writing, the US Dollar Index was up 0.63% on the day at 105.24.

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.

AUD/USD bulls seem hesitant below 0.7050 ahead of RBA on Tuesday

AUD/USD reverses an Asian session dip on Monday as renewed optimism over Iran diplomacy boosts investor confidence, keeping a lid on the safe-haven US Dollar and supporting the risk-sensitive Aussie. Spot prices, however, remain below the one-month high, touched last Thursday, as bulls wait for the crucial RBA decision before taking fresh positions.

USD/JPY climbs to 158.00 neighborhood as BoJ uncertainty weighs on the JPY

The USD/JPY pair gains some positive traction at the start of a new week, recovering further from Friday's post-Bank of Japan (BoJ) swing low to sub-157.00 levels. The momentum lifts spot prices to the 158.00 neighborhood during the Asian session and seems unaffected by fresh intervention warning from Japan's Finance Minister Satsuki Katayama.

Gold finds relief from Oil’s decline as traders await key US economic data

Gold retains a positive bias during American trading hours on Monday after sliding to a fresh yearly low of $3,870 on Friday and ending October down 6.87%. A pullback in Oil prices amid diplomatic efforts between the US and Iran supports the precious metal. However, the rebound lacks conviction as the fundamental backdrop continues to raise doubts over a sustained recovery.

Dogecoin risks deeper slide as whales diverge

Dogecoin hovers around $0.075 on Monday after falling for the fifth consecutive week since the end of September. Santiment data shows diverging whale activity, as large holders reduce their positions while smaller whale wallets accumulate tokens. Meanwhile, weakening on-chain metrics and a deteriorating technical outlook suggest that DOGE could remain vulnerable to further losses.

Why strong US growth could not stop the bond rally and AI selloff

The US economy grew at a 3.4% annual rate, yet Treasury yields fell and the Nasdaq ended October with its worst monthly performance since March 2025. The market is no longer rewarding capital expenditure simply because it supports growth. Investors are testing whether that expenditure can produce cash flow and returns above the cost of capital.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.