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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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza