Federal Reserve Bank of St. Louis President James Bullard talks about the potential for a reduction in the Fed’s bond buying, asset prices and the U.S. economy. Bullard speaks with Erik Schatzker on Bloomberg Television’s “Market Makers.”

Source: Bloomberg Nov. 20 2013

Category: Bailouts, Federal Reserve, Video

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6 Responses to “Bullard on the Taper: “Everything is on the Table””

  1. gabeh73 says:

    I think he meant….”Everything is on the table, but the most powerful banks and private equity firms like Goldman Sachs and Warburg Pincus are still our top priority the rest is PR”.

  2. LeftCoastIndependent says:

    Well, in that case, I will return to business “under the table”.

  3. rd says:

    Nah. It will never happen. Every time the stock market burps they will rush back in to buy more bonds.

    To paraphrase Buzz Lightyear who will probably be nominated to be the next Fed Chairman after Janet Yellen:

    “To QE-infinity and beyond!”

  4. Willy2 says:

    - Short term rates are not set by the FED. Saying that short term won’t be raised any time soon by the FED is “FED speak” for: “We don’t see any reason why Mr. Market will push rates higher before say 2016″.

    Or put another way: “We don’t expect a pick up in demand for capital/credit before 2016″. And more demand equals higher rates.

    And when I hear anyone from the FED talking about “Tapering” then I think “Rising interest rates are coming”.

  5. supercorm says:

    At least he was honnest in saying the Fed wants to push people in risky assets. Was pretty straight forward.

    Rates at 2.8%, 22bps from record high post tapering discussion, and at a one month high, its clear that the market doesn’t like that and the Fed might be in a catch 22 situation. On one hand, you feel the Fed is probably seeing that the cost outweigh benefits and is forced to pull out, while they look on the stock markets for bubble when they are missing the biggest of them all, the Bond market. BoAML is recommending to avoid bonds, so we may have the 10yr yield way above 3.0% by the time the Fed decide to taper …

    Economic numbers, well, still looking better than they are. Unemployment rate is falling with participation rate while avg hourly hours and workweek is sideways, GDP bouncing to 2.8% thanks to inventories as they are running at 2.0% on average for the last 6 quarters … and disinflation is not helping future numbers.

    Testing 1800 ahead of Thanksgiving might be the last gift we’ll have. China’s plenary absolutely not that bullish, contrary to beliefs (ie moving from infrastucture investments to consumptions will definitely lead to a lower GDP), and removing barriers are not helping either as 65% of Chinese SOEs are actually making profits, thx to SOEs, and I’m not even getting into bad loans issues in the process. So what we have left ? Belief that the economy is strong enough to face a slow removal of monetary help from the Fed and that retails sales are bouncing back thx to a strong economy … well, at $98 for a 32″ flatscreen TV at Wal Mart who is lowering the price as we speak because everyone is facing stiff competition way ahead of xmas, I really doubt that we’ll have more gifts into xmas … sell at 1800, or just before thanksgiving and enjoy the turkey !

  6. chartist says:

    I am, and have been, watching car loan interest rates for a tell on the taper time frame….How far out are the auto companies willing to loan at low rates on a depreciating asset? The government has already shown that it backs the play of the auto companies.