We’re beginning to think that St. Louis Fed President James Bullard is seriously bi-polar or schizophrenic or has split-personality disorder when it comes to monetary policy.Remember, Bullard was the one who wrote the paper, Seven Faces Of The Peril (.pdf), which sounds like a kung-fu or horror movie title to describe the dangers of deflation. He’s known as an uber-dove.
But now he’s sounding more like fellow FOMC member Thomas Hoenig, warning about bubbles and such.
According to MNI, he’s warning of “dramatic” consequences if the Fed acts too aggressively (though annoyingly, there could be dramatic consequences if the Fed moves too timidly too.
Of course, nuance is refreshing. The last thing we’d want is for everyone to just pick a box — dove or hawk — and stick to the same script.