Former Federal Reserve Bank of St. Louis President James Bullard spoke Friday in Marrakech, Morocco, at a Euro50 seminar on the sidelines of the annual meetings of the International Monetary Fund and World Bank.
- “The risk that’s underpriced in markets is that disinflation stalls out or stops altogether and core PCE inflation starts to go up again,”
- “If that happens the committee will have to contemplate going to 6% or 6.5%”
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Now that Bullard is no longer a responsible policymaker, he has a new academic job, he is letting rip on the scary prognostications!
Having said that, 6.5% is not out of the question if needed, its Fed Funds history shows us numerous visits above there.
This article was written by Eamonn Sheridan at www.forexlive.com. Source