Fed's Bullard, which is known for his hawkish approach, unexpectedly provided some slightly dovish comments, which managed to halt the downward move of major US indexes.
Key takeaways from his speech:
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The current situation may fall under rubric of 'credible' disinflation
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Markets have factored in the possibility of a changed fiscal stance as well as a more aggressive Fed
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Inflation expectations have now returned to levels seen prior to the 2021 inflation shock
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Markets anticipate that inflation will be brought under control in the coming quarters and years.
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A soft landing in the United States is possible if the post-pandemic regime shift is well executed.
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The current situation in the United States may be classified as a 'credible' disinflation with low output costs.
US2000 managed to erase nearly half of today's losses and is currently testing local resistance at 1890 pts. Source: xStation5
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