While this Fed President can’t actually vote this year, he’ll be able to next year.
Bloomberg: Federal Reserve Bank of St. Louis President James Bullard said policy makers may not start to raise rates until early 2012 while facing a “too low for two long” argument that may “weigh heavily” on the central bank.
The Fed’s “main issue” will be how to avoid spurring inflation while adjusting its $1.725 trillion in asset purchases, a main tool in its effort to sustain economic growth, Bullard said today in the text of slides for a St. Louis speech.
He also adds to the ‘lower for longer’ view of people such as David Rosenberg who believe that interest rates will remain low for a while.
Yet stocks and commodities probably won’t complain. Bonds won’t either at first, until they realise what it could mean for future inflation.