Comments from Bullard
- Calls for balance sheet to begin declining as soon as bond purchases end
- The Fed is showing commitment to higher inflation framework but now risks overachieving with inflation too high for too long
- ‘Robust’ expansion to continue through 2022
- At this point, it would take ‘a very large shock’ to throw off start of taper
- Policy normalization can move faster than 2007-09 given the speed of the recovery
Bullard is slowly turning into a major hawk. What’s scary about him is that he will often shoot from the hip and isn’t scared of roiling markets with a comment, so it will be a small headwind every time he talks. That said, the market largely stopped paying attention to Bullard a long time ago.