Bloomberg Surveillance Surveillance: Bullard on a Soft Landing
4 snips
Sep 21, 2023 
Former St. Louis Fed President Bullard discusses the prospects for a soft landing. Kochugovindan reacts to BOE rate decision. Morse says there is no longer an oversupply of oil. Juckes discusses the FX market amid central bank decisions. Levy talks about the recent sale of star striker Harry Kane.
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Higher for Longer
- The Fed's dot plot suggests a "higher for longer" interest rate policy.
- This approach aims to curb inflation despite recent economic growth.
Faster Impact
- The economy's rapid information flow and decision-making suggest quicker monetary policy transmission.
- This implies faster impact than in previous eras, so higher rates now can curb inflation sooner.
Historical Precedent
- The 1994 tightening cycle, while smaller than the current one, led to a strong US economic period.
- Successfully lowering inflation with a strong economy could lead to a productivity boom in the 2020s.