ICYMI, former Fed Bullard: investors too complacent on inflation, FOMC might go to 6.5%

<p>Former Federal Reserve Bank of St. Louis President James Bullard spoke Friday in Marrakech, Morocco, at a Euro50 seminar on the sidelines of the annual meetings of the International Monetary Fund and World Bank.</p><ul><li>“The risk that’s underpriced in markets is that disinflation stalls out or stops altogether and core PCE inflation starts to go up again,” </li><li>
“If that happens the committee will have to contemplate going to 6% or 6.5%” </li></ul><p>—</p><p>Now that Bullard is no longer a responsible policymaker, he has a new academic job, he is letting rip on the scary prognostications!</p><p>Having said that, 6.5% is not out of the question if needed, its Fed Funds history shows us numerous visits above there. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.