St. Louis Fed President James Bullard noted on Monday that they will not need the emergency policies anymore as the pandemic comes to a close, as reported by Reuters.
Additional takeaways
“Low interest rate and low inflation rate era is not ending any time soon.”
“Fed got the chance to test the framework within the first year of it being in place.”
“Fed said it would tolerate an overshoot on inflation and it looks like we’re going to get an overshoot.”
“This is a volatile environment, there is upside inflation risk.”
“We want to make changes in a way that is well telegraphed ahead of time.”
“Fiscal response was well done, more progress made on vaccines than we originally expected.”
Market reaction
The US Dollar Index remains on the back foot after these comments and was last seen losing 0.47% on the day at 91.88.