Stocks & Bonds Tumble After Fed’s Bullard Comments
St. Louis Fed President James Bullard did what he does and unleashed another barrage of hawkish torment for the believers in a pause or pivot.
And while several other Fed speakers have said similar things this week, Bullard turned the dial up to ’11’.
“Even under these generous assumptions, the policy rate is not yet in a zone that may be considered sufficiently restrictive,” Bullard said Thursday in Louisville, Kentucky at an event hosted by Greater Louisville Inc.
“To attain a sufficiently restrictive level, the policy rate will need to be increased further.”
Bullard presented charts showing a sufficiently restrictive rate might be between about 5% and 7%, though he didn’t spell out in his prepared remarks what rate level he favored…
His comments shifted rate-trajectory expectations hawkishly higher…
The reaction is notable as stocks are getting slammed…
Treasury yields spiked (especially at the short-end)…
And the dollar is spiking…
Bullard closed by saying: “It is possible that increased financial stress could develop,” but offered no ‘…and then what’…
BULLARD CITES POLICY RULES SUGGESTING RATES OF BETWEEN 5%-7%
They really want 1MM layoffs every month
— zerohedge (@zerohedge) November 17, 2022
Tyler Durden
Thu, 11/17/2022 – 08:17
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