James Bullard does not change his current view on US economy, in Bloomberg TV interview said that current level of interest rates is on an appropriate level.
According to the FOMC member, there will not be anything like the taper tantrum which is probably the result of reduction in the balance sheet. He also said that FED will communicate effectively with markets.
Bullard adds that he disagrees with the idea of 200 basis points at this time and that inflation numbers have been a little surprising. He also points out that the idea that the economy is growing faster than the trend does not match data.
On equity market, James Bullard said that is up a lot since the US election in anticipation of tax changes and potential economic growth.
Today we have an important data from the US economy, core PCE inflation which is important for the Federal Reserve. Consensus is at 1.5 percent but since the beginning of the year we see a sharp decline in inflation, which supports Bullard’s view on current level of interest rates.