Bullard: Prospects of a US soft landing have increased
It would be good for the Fed to get to restrictive territory quicklyToo soon to say when the Fed will change the balance sheet drawdownUnclear how much tightening impact Fed will get from balance sheet cutsJob market can remain resilient in 2023Real wage gains have fallen short of inflation increaseProspects of a US soft landing have increasedCurrent pricing puts the Feb 1 meeting at 58% for a 25 bps hike and 42% for a larger 50 bps hike. You can imagine that Bullard would prefer the hike faster, even if it doesn't change the terminal rate. This article was written by Adam Button at www.forexlive.com.
- It would be good for the Fed to get to restrictive territory quickly
- Too soon to say when the Fed will change the balance sheet drawdown
- Unclear how much tightening impact Fed will get from balance sheet cuts
- Job market can remain resilient in 2023
- Real wage gains have fallen short of inflation increase
- Prospects of a US soft landing have increased
Current pricing puts the Feb 1 meeting at 58% for a 25 bps hike and 42% for a larger 50 bps hike. You can imagine that Bullard would prefer the hike faster, even if it doesn't change the terminal rate.
This article was written by Adam Button at www.forexlive.com.
