Fed’s Bullard Says US Economy Close to Normal

The U.S. jobless rate will fall below 6 percent and inflation looks likely to rise back to 2 percent later this year, putting the economy closer to normal than most realize, a top Federal Reserve official said on Thursday.

“You are basically going to be near normal on both dimensions basically later this year,” St. Louis Fed President James Bullard, speaking in an interview on Fox Business Network. “That’s shocking, and I don’t think markets, and I’m not sure policymakers, have really digested that that’s where we are.”

Bullard reiterated his belief that raising rates by the end of the first quarter in 2015 will be appropriate, based on his forecast that U.S. growth will register 3 percent for the next four quarters.

If data disappoint, he said, he will revise that forecast.

via CNBC

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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