Markets do not believe Fed's projected rate path says Bullard

17 June 2016, 16:04
Sherif Hasan
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Double bubble Bullard

  • Mismatch between markets and Fed dot plot is causing distortions in global markets
  • Best thing for Fed to say is that the economy is not likely to change much in the foreseeable future
  • Fed should acknowledge that the economy won't change much without an outside shock
  • Fed should make a rate hike move sometime this year and then go on hold until end of 2018 unless there is a shock that changes the outlook
Blimey, I find myself agreeing with him about how the Fed should tell it. And as for the poxy dot plot, how is it a surprise that the market doesn't believe them when it keeps getting confirmation of its beliefs by reduced Fed expectations for the path of rates?
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