In an interview with Bloomberg Television’s Michael McKee and Stephanie Ruhle, St. Louis Fed President James Bullard said the economy is improving and has ‘momentum for 2014,’ “I think we are look at a stronger economy. I think we have momentum for 2014. I have not seen anything so far to dissuade me from that.” Fed President Bullard also said:
· Demographics big reason for falling labor participation
· FOMC on ‘good course’ on QE tapering
· Any change to taper pace would be ‘powerful’ signal
· FOMC plans to ‘move out’ of QE buying
· Expects inflation to accelerate toward 2% Target
· Improving economy should push up inflation
· Inflation is ‘partly a wild card’
· Emerging markets so far no ‘impinging’ on U.S.
· Yellen did ‘Fantastic job’ in testimony yesterday; Yellen likely to provide policy continuity
· A more normal economy would call for ‘normal policy’
· Policy thresholds have been ‘useful’
· Fed Needs to Adopt ‘qualitative guidance’
· Signs of Fiscal accord a ‘Bullish Factor’ for 2014
· Wants Yellen to hold press conference after each FOMC
Video for viewing here.