“Markets have taken note of the probabilities around a changed fiscal stance and a more aggressive Fed and expect inflation to come under control in the coming quarters and years,” Federal Reserve President St. Louis James Bullard.
Other things to take with you
“The Fed Has Considerable Institutional Credibility Compared to Its Seventies”
“The current situation in the US may fall under the rubric of credible disinflation that does not have large exit costs.”
“A soft landing is feasible in the US if the post-pandemic regime change is done well.”
Market reaction
These comments do not appear to have had a significant impact on the valuation of the US dollar. At the time of writing, US dollar index rose 0.63% on the day to 105.24.
