St Louis Fed's Bullard is (Sort Of) Back on My Good Side

Looks like the arsonist has changed his tune.


The Federal Reserve Bank may not be able to wait until uncertainty over several potential global crises recedes before beginning to tighten its ultra-loose monetary policy, a top Fed official said on Wednesday.

Even after the Fed begins withdrawing monetary stimulus, there will still be plenty of accommodation in place, St. Louis Fed President James Bullard said in slides accompanying a speech for delivery in London. Since December 2008, the Fed has kept interest rates near zero and has bought more than $2 trillion in assets to help push borrowing costs down still further.

Here's what I see: when they have a vote, they're all about the easy money. As soon as they're sitting in the cheering section, they start railing on cheap money.

Anyone else remember Bullard's Seven Faces of “The Peril” from last year?

In this manuscript, Federal Reserve Bank of St. Louis President James Bullard argues that the Federal Open Market Committee’s extended period language may be increasing the probability of a Japanese-style deflationary outcome for the U.S. within the next several years. Bullard concludes that an appropriate quantitative easing policy offers the best hope for avoiding a low nominal interest rate, deflationary outcome.

The economy is no different now than it was when he wrote that, it's just easier to pimp the popular option when one doesn't have to answer to the rest of the Committee.

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.


chairmanben said...

Better be out of US Treasury Bonds when Bernanke uses this slide deck.

Will Janet usurp him, to get a chance at Crown Vic with built in Blackberry charger.

Will Greenspan steal the thunder...

Anonymous said...

KC, St. Louis and now Minneapolis... there were some serious riots in the Midwest during the Great Depression with more than a few religious undertones. We had Huey Long in my birth state at about the same time. The flat landers in the Mid West had Father Charles Coughlin. Those Jacobins stirred up all kinds of trouble.