Fed’s Bullard Slams Recovery Narrative, Confirms Fed Top-Ticked Economy; Hints At Fed Policy Error

By Tyler Durden

Back in 2014, just as the market was plunging, St Louis Fed’s Bullard stopped the bleeding when in a Bloomberg interview said that a “logical response” to the tumbling market, would be to “delay the end of QE” and strongly suggested ed that “QE4” would be considered to prevent further market losses. The S&P exploded.

Well, this morning the Fed’s nonvoting converted permadove (Bullard used to be the most hawkish Fed member until his unexpected conversion in 2014), is back and in prepared remarks for a speech in St. Louis is once again suggesting that all the talk of an “overheating” economy was just that saying that “financial market readings since the March decision have moved in the opposite direction” of what would normally occur after a rate hike, adding: “this may suggest that the FOMC’s contemplated policy rate path is overly aggressive relative to actual incoming data on U.S. macroeconomic performance.”

Speaking in St. Louis, Bullard admitted that U.S. macroeconomic data have been relatively weak, on balance, since the Federal Open Market Committee (FOMC) met in March and raised the fed funds rate. He said that economic growth is unlikely “to move meaningfully” this year from the …read more

Source:: ZeroHedge