News 

Fed member James Bullard challenges the idea that recession is inevitable

“At the start of May, data showed that the U.S. economy had entered its second-longest economic expansion on record, but also the slowest in the post-war period” writes unknown author for cnbc.com. “The U.S. expansion, the growth rate has been very slow since the financial crisis …The latest growth rate numbers out of the U.S. pointed to an economic expansion of 4.1 percent in the second quarter of the year — the highest in nearly four years. Source: cnbc.com Share This:

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Markets News 

‘Respect’ the bond market and what it’s trying to tell us, Fed’s Bullard warns

“Federal Reserve member James Bullard told CNBC that changes in the bond market are the main focus point for investors at the moment” writes David Orrell for cnbc.com. In particular, Bullard mentioned that investors are carefully tracking the yield curve to check whether a potential recession is getting closer.An inversion of the curve has previously pre-empted an economic recession and is thus interpreted as a sign that economic turmoil is around the corner. If the Fed raises rates 50 basis points and the 10-year (Treasury bond) does not cooperate, you…

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Crypto News Regulators 

Cryptocurrencies are pulling the U.S. back to the 1830s, Fed official says

“At present, there are lots of privately issued cryptocurrencies, trading at various rates minute by minute, Bullard said” writes Senior Economics Reporter for marketwatch.com. Instead of ushering the U.S. into the future, cryptocurrencies are taking the country back to the 1830s, St. Nouriel Roubini, the famously bearish economics professor at New York University, said that the cryptocurrency will take the U.S. “back to the stone age.” Opinion: Cryptocurrencies taking us back to world of “The Flintstones”. The No. 1 digital currency, bitcoin BTCUSD, +0.84%  was the best of a bad…

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St. Louis Fed’s Bullard says rates already near neutral, no more raises needed

“This is an equilibrium process, not an inflationary one,” Bullard said, and “it is not necessary to disrupt” it with higher interest rates” writes Midwest Communications Inc for 95kqds.com. His colleagues have proceeded to gradually raise rates nonetheless.Louis Federal Reserve Bank President James Bullard on Friday spelled out the case against any further interest rate increases, saying rates may already have reached a “neutral” level that is no longer stimulating the economy.They cite the impact of burgeoning federal deficits and a recent tax cut are felt in an economy with…

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Fed’s minutes got it wrong, says Bullard: Not all members see need for higher interest rates

“Treasury yields TMUBMUSD10Y, -0.45% have moved higher this week as investors brace for higher interest rates” writes Senior Economics Reporter for marketwatch.com. There is not need to have a “permanent” move in interest rates to counter a “temporary” fiscal impulse, he added.The current level of rates “is quite close to neutral right now,” Bullard said, neither boosting or dampening inflation. Source: marketwatch.com Share This:

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Fed’s Bullard says ‘substantially’ higher rates risk overly tight policy

“If the Committee raises the policy rate substantially from here without other changes in the data, the policy setting could become restrictive,” Bullard said” reports businessinsider.com. Though tricky to estimate, the neutral rate is important for the Fed as a gauge of policy.If the Fed continues to hike short-term rates, he said, the result could be policy that is too tight for the current economy.”I have been a little bit concerned that the committee goes too far too fast,” Bullard said. Source: businessinsider.com Share This:

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Fed’s Bullard says low U.S. ‘neutral’ interest rate unlikely to rise over next 2 years

“The neutral rate is the rate at which gross domestic product is growing at its trend rate and inflation is stable” writes Senior Economics Reporter for marketwatch.com. Fed officials calculate that the neutral rate of interest has been very low since the financial crisis.At issue is the theoretical real rate of interest, or R-star in economics jargon.According to the minutes of the Fed’s January meeting, many Fed officials believe that the neutral level could start to trend higher. Source: marketwatch.com Share This:

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Markets News Regulators Stocks 

Fed’s Bullard warns that too many rate hikes this year could slow the economy too much

“Central bankers held interest rates steady last month, but indicated optimism about the economy and inflation moving higher toward the Fed’s 2 percent target” writes Matthew J for cnbc.com. Bullard said the Fed does not have to hurry on rates because the bond market has been doing some of the work.Wall Street expects the Fed to raise rates at next month’s meeting, in the first of what’s seen as at least three total hikes in 2018.He said the Fed needs to follow the economy, which is showing strength but still…

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Markets News Regulators 

Fed’s Bullard tries to calm market’s inflation fears

“On interest-rate policy, Bullard said the current rate range of 1.25%-1.5% is much closer to neutral than in previous years” writes Senior Economics Reporter for marketwatch.com. Louis Fed President James Bullard said Tuesday he didn’t think the strong U.S. labor market meant that higher inflation is just around the corner, pushing back on one of the market’s fears that has led to a broad sell off in stocks in recent days.Bullard is not a voting member of the Fed’s policy committee this year. Source: marketwatch.com Share This:

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