Ex Fed Pres. Bullard: The story of US recession is not materializing

<ul><li>The story of US recession is not materializing</li><li>Strong jobs report confirmed a reacceleration of the US economy</li><li>Higher for longer for the Fed</li><li>Yes we are getting some disinflation which is good, but core PCE at 3.8% is good but still nearly double the 2% target</li><li>My hope is we contain inflation, get it down to 2% and then have a period of growth</li><li>Banks have weathered the banking storm so far. </li><li>Larger banks have not had problems.</li><li>Banks are managing through risk</li><li>Maybe one more rate hike. Being data dependent is appropriate. </li><li>The risk is that inflation goes back up to over 4%.</li><li>If it does the Fed may have to go to 6% to 6 1/2%. That is not priced in</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.