St Louis Fedhead Bullard Will Be in the Bunker with the Mayans Before Interest Rates Go Up

Wednesday, November 18, 2009 , , , , 0 Comments

Those chickenshit bastards are going to wait until the end of the world at this rate - ironically, or perhaps not at all, St Louis Fed President James Bullard points out that 2012 may be the perfect time to jack up those interest rates at last.

2012? Too cute.


Federal Reserve Bank of St. Louis President James Bullard said past experience suggests policy makers may not start to raise rates until early 2012, while facing a “too low for too long” argument that may “weigh heavily” on the central bank.

“If you look at the last two recessions, in each case the FOMC waited two and a half to three years before we started our tightening campaign,” Bullard said today in a speech in St. Louis. “If we took that as a benchmark, that would put us in the first half of 2012.”

Bullard added that in the debate on when to tighten policy, “the idea that you might be creating asset bubbles by keeping rates too low for too long will be an important argument.”

Policy makers after a Nov. 3-4 meeting repeated that they will keep interest rates near zero for “an extended period” while saying policy will stay unchanged as long as inflation expectations are stable and unemployment fails to decline.

The Fed’s “main issue” will be how to avoid spurring inflation while adjusting its $1.725 trillion in asset purchases, a main tool in its effort to sustain economic growth, Bullard said today.

“The main challenge for monetary policy going forward will be how to adjust the asset purchase program without generating inflation and still providing support to the economy while interest rates are near zero,” he said. Bullard is not a voting member of the Federal Open Market Committee this year. He will vote next year.

The dollar dropped 0.5 percent to $1.4951 per euro and U.S. stocks declined. The Standard & Poor’s 500 Index fell 0.4 percent to 1,105.32 at 9:54 a.m. in New York. The yield on the 10-year note rose 3 basis points, or 0.03 percentage point, to 3.35 percent.

Good, so we'll get a better return on our money for about... a quarter before the Earth shivers and swallows itself whole? Awesome.

See you guys in the spaceship with my Nikes on, this is bullshit.

The dollar did not take Bullard's weak ass comments very well, obviously. But doomsday finance bloggers find it to be entertainment and sometimes that's all that matters.

This goes out to you, St Louis Fed:

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.