Fed’s Bullard: Seeing effects of Fed guidance on economy

“The Fed still has to follow through to ratify the forward guidance previously given but the effects on the economy and on inflation are already taking hold,” St. Louis Federal Reserve Bank President James Bullard said on Monday.

Bullard repeated that the US labour market remains robust and added that the US economy is expected to continue to expand through 2022.

As for the market’s reaction; these comments had no impact on the US dollar’s valuation against its major rival currencies. The US Dollar Index was down 0.25% on a daily basis at 104.40. James Bullard is a voting member of the interest-rate-setting Federal Open Market Committee this year.

Bullard said in materials for a presentation in Spain. But he added, “Risks remain substantial and stem from uncertainty around the Russia-Ukraine war and the possibility of a sharp slowdown in China”.