Fed’s Bullard emerged as the most dovish member - BNZ

Jason Wong, Currency Strategist at BNZ, notes that on Friday, the Fed’s Bullard owned up to being the FOMC member whose “dot” portrayed only one more rate hike through to the end of 2018, making him the most dovish member.

Key Quotes

“He now believes that growth will remain modest, due to slow productivity growth and other factors, keeping inflation about where it is, requiring only one more rate hike over the next couple of years.

Bullard shouldn’t feel like an outlier, as his view closely aligns with the weighted average of millions of investors, ie. the market. He was also the only FOMC member that didn’t submit a long-term “dot” forecast, believing that the committee should scrap the dot plot picture.”