Market news
04.08.2021, 13:24

St. Louis Fed president Bullard: Inflation is going to come down but not as fast as some people want

  • Notes that the last time we had a run-up in Covid cases in December and January, it did not impact the economy as much as predicted
  • U.S. firms and consumers have found ways to work, produce and consume while the pandemic is still going on
  • There have been some pretty good macroeconomic outcomes despite the pandemic
  • For people in high physical contact jobs, there is still some hesitancy to go back to work because of the pandemic
  • We've had a major inflationary shock
  • Thinks inflation is going to be more persistent than some people expect
  • Sees inflation of 2.5% to 3% in 2022
  • Thinks inflation will come down but not as low as some people want
  • Does not think there will be a taper tantrum in the markets
  • Markets are well prepared for taper
  • Labor markets are improving
  • Believes Fed should taper more quickly so it can be prepared to react with rates in 2022
  • Says he is moderately concerned about the housing market

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