June 18, 2021
News Bites
Fed's Bullard continues the FOMC's bullish rhetoric
by Rajan Dhall
Kitco News
(Kitco News) - St. Louis Federal Reserve (Fed) President Jim Bullard who is currently a non-voting member has been on CNBC to give us some clarity on the Fed's position following the FOMC meeting on Wednesday.
First up in the interview Bullard noted that the pace of inflation was more intense than the FOMC were expecting. We have been hearing over and over that inflation is transitory but there was no mention of a change in thought. The language change is very interesting as there could be a Fed reaction to some of the market moves in raw materials and good now which some analysts believe is behind the curve.
He went on to say now the pandemic is coming to a close the Fed needs to figure out how to pare back emergency measures. The taper word has been thrown around a lot this week and it was interesting to hear Bullard say "Powell officially opened the taper discussion this week and there are more in-depth discussions to follow". In terms of any imminent action, The St. Louis Fed President said "the Fed needs to be ready to make adjustments if necessary".
Looking ahead to some of the forecasts, it was expected that the Fed may raise some of its inflation expectations. Bullard noted, "we will achieve above 2% inflation in 2021-22". In regards to a reaction, he noted " month to month taper should be more dependant on condition, the path of inflation and reopening (of the economy)".
Still very bullish stuff then from the Fed, the USD reacted to the comments and general bullish greenback sentiment over the last few sessions. The dollar index moved above 92.00 and traded 0.18% higher. Gold has taken a dive and over the last hour lost 0.82% (hourly chart below).
http://www.kitco.com/news/2021-06-18/Fed-s-Bullard-continues-the-FOMC-s-bullish-rhetoric.html
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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