Fed's Bullard: US debt is still considered safe-haven asset, dollar reserve currency

St. Louis Federal Reserve President James Bullard said on Wednesday that US Treasury bonds are still considered as safe-haven assets and the US dollar is a reserve currency, as reported by Reuters.

Additional takeaways

"Monetary policy in 2020 was very successful, avoided financial panic."

"Fatalities per day are likely at the peak, as they go down that will have big ramifications for the economy."

"There are risks; one would be mutation making vaccines less effective but that's not baseline case."

"Not expecting an all-clear date for the pandemic but as vaccines come on virus runs out of victims."

"Don't want to put specific dates on when expect to get to substantial further progress bar for tapering QE."

"It's possible you get a boom, let's wait and see if that happens."

"We've got a long way to go on labor market improvement."

"Conditions are good for generating inflation."

"No matter what theory of inflation you subscribe to, they all are pointing in the direction, toward an increase."

Market reaction

The US Dollar Index showed no immediate reaction to these remarks and was last seen gaining 0.3% on the day at 90.37.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News