Fed's Bullard said there's risk the FOMC could be too aggressive on rates
Fed's Bullard said there's risk the FOMC could be too aggressive on rates, in comments on Bloomberg radio. The Fed doesn't need to be preemptive on rates due to weak inflation trends. Rates can be left on hold for now as data are evaluated. The drop in inflation has surprised policymakers. The G-7 is in a low growth, low inflation regime. And he's not too optimistic that price pressure will pick up this year. Analysts're in a different era of inflation. Inflation misses have added up and undercut credibility. Meanwhile, there's no recession on the horizon, but you never know, he added. The weak dollar makes some sense, given the strengthening in Europe. These aren't surprising comments from Bullard, who has turned more circumspect on rate hikes, still looks for QT to begin this year, but with a slow, incremental start. Analysts still look for one more tightening in December, but a softer than expected CPI report on Friday could throw some doubt on that outlook.