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.

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