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Fed's Bullard: Average inflation targeting would ‘make a lot of sense right now’

Fed's St. Louis James Bullard has been crossing the wires. "The United States has likely skirted the recession risks of last year, with businesses adjusting to a new trade environment and the most acute worries about a trade war "abated somewhat," St. Louis Federal Reserve bank President James Bullard said on Thursday," – Reuters wrote. 

Key comments

 

  • Something like average inflation targeting would ‘make a lot of sense right now’ given several years of inflation being below target.
  • Reasonable chance of "soft landing" for u.s. this year from fast 2018 growth, 2019 risks.
  • Says businesses are adjusting to remain profitable even in the face of trade uncertainty.
  • Bullard says recent developments suggest "near-term uncertainty" about trade policy has "abated somewhat," and will be less of an issue in 2020 than it was in 2019.
  • Bullard notes seemingly large gains in stocks last year influenced by late 2018 selloff; index "essentially unchanged" from Oct. 2018 to Oct. 2019.

About James Bullard

Fed dove James Bullard from St. Louis, who wanted a half-point rather than quarter-point cut in September, has been replaced this year and is no longer a voting member, so his comments are less impactful on the market. 

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