<ul><li>Appropriate that rates reach range of 4.50-4.75% by year's end with further hikes being 'data dependent'</li></ul><p>Previously, Bullard was talking about a Q1 peak of around 4.5% but now he's talking about 4.50-4.75% by year end. Rates are at 3.00-3.25% currently so that's 75-75 rather than 75-50 as most are anticipating.</p><p>So this is a step in the hawkish direction but he's a hawk so it's not necessarily indicative of a shift from the core of the FOMC, but it's a start.</p><p>At the same time, he's not talking about boosting the terminal rate so I'm not sure how much shifting around 25 bps from February to December matters.</p><ul><li>Current inversion of the yield curve a 'nominal inversion' involving expected inflation, not an indicator of recession risk</li></ul><p>The hubris.</p>
This article was written by Adam Button at forexlive.com.
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