Bond Market Research Shows Fed’s Bullard Had The Most Impact

Federal Reserve Bank of St Louis President James Bullard had the biggest impact on bond markets of all Fed policymakers in 2013, according to a new tally.

Research by Macroeconomic Advisers showed Bullard, seen as a policy centrist, beat former Fed Chairman Ben Bernanke for the mantle of most market-moving U.S. central banker, although the Fed chief had a bigger impact on a per-speech basis.

Bullard, a voter on monetary policy last year, moved the 10-year Treasury yield by a cumulative 29 basis points over the year, which was marked by uncertainty about when the Fed would start to unwind support for the economy.

Bullard rebuked colleagues for their decision in June to announce a plan to reduce bond buying, saying inflation remained too low to justify slowing purchases. He dissented from the majority for the first time at that meeting. The Fed eventually announced in December it would start to taper.

Bernanke, who left the Fed this year, racked up a cumulative impact of 21 basis points. New Fed Chair Janet Yellen ranked well down the table at 11 basis points, although she came in third after Bernanke and Fed Governor Jeremy Stein in terms of impact per speech.

via Reuters

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