St. Louis Fed dove Bullard warned of "material risk"
St. Louis Fed dove Bullard warned of "material risk" of yield curve inversion next year if the Fed continues to hike rates, which would be a "naturally bearish" signal for the economy. He views it as unlikely that long-term rates will increase to match or exceed the Fed's expected pace of policy tightening and, given weak inflation, he sees no more need to continue raising short term rates. He doesn't view the yield curve signal as inflallible, but says that it should be taken seriously by policymakers and investors. His more dovish-leaning views and the economy and inflation should not be a surprise to the markets and cut against the grain of the dot-plot for 2-3 more hikes heading into 2018.