The FED Is Worried!

The NY Times reports, “On Thursday, James Bullard, the president of the Federal Reserve Bank of St. Louis, warned that the Fed’s current policies were putting the American economy at risk of becoming “enmeshed in a Japanese-style deflationary outcome within the next several years.”

“This is very significant,” Laurence H. Meyer, a former Fed governor, said of Mr. Bullard’s new position. “He has been one of the most hawkish members, but he is now calling for the Fed to ease aggressively. There seems to be no question he wants to do it sooner rather than later, and relatively forcefully.”

It’s Inflate Or Die!  Let’s see how the markets react.

UPDATE:

Stocks Plummet After Bullard Warns Of Deflation – U.S. Commentary


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