• Home
  • Analytics
  • Market News
  • St. Louis Fed president Bullard: FOMC has been surprised to the upside over last 6 months with data including inflation - CNBC

Market news

18 June 2021

St. Louis Fed president Bullard: FOMC has been surprised to the upside over last 6 months with data including inflation - CNBC

  • FOMC's hawkish tilt was due to the fact that economy has been performing better than expected this year
  • It is natural to be more hawkish with higher inflation
  • Recent data is very good news; says he expects to see lots of continued improvement
  • Inflation more intense than expected
  • Some upside risk remains with some reopening still to occur
  • Upside risk of inflation is okay since that is what Fed was hoping to achieve
  • Says he thinks inflation forecast will be achieved in 2021 or 2022
  • Fed must remain nimble on its policy
  • Upcoming fiscal debates on infrastructure are not likely to influence Fed's policy
  • Fed's Chair Powell opened taper debate at last meeting; more in-depth discussion to follow
  • Fed has eye on equity market valuations but different members have different opinions on how that influences policy
  • I'm personally leaning toward the idea that the Fed does not need to be involved in mortgage-backed securities (MBS)
  • Volatile data this time means taper may need to more state-contingent, less automatic, than the last time
  • U.S. does not want to get into a housing bubble
  • Fed has to be ready to adjust taper as necessary
  • Says he supports the idea that month to month taper should be more dependent on conditions, the path of inflation and reopening
  • Reveals that his dot reflects rate increase in late 2022
Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2022 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location