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Fed's Bullard: Market trading too dovishly compared to the committee

FXStreet (Bali) - St. Louis Fed President James Bullard sounded quite optimistic on the prospects of a tighter Fed, even suggesting that markets were making a mistake in their current low cautious forecasts.

“The market is trading too dovishly compared to the committee,” Bullard said in an interview in Aug 16, via Bloomberg. “I think that’s probably a mistake,” he said, adding that markets “should come closer to where the median of the committee is.”

Bullard anticipate the first rate increase at the end of Q1 2015, while noting his forecast noting that such prediction is “probably on the early side” compared to other members of the Fed.

“The case for the end of the first quarter next year is improving because labor markets have improved a lot,” Bullard said.

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