Fed’s Bullard says there will be low inflation impact from China

Bullard speaking to Bloomberg

Slowing China growth not a surprise
– US fundamentals and outlook still look good
– Says last 10 days shouldn’t change the Fed’s outlook
Given his past record on inflation I’d take his CPI comments with a large bag of salt. His dismissal of wage gains and their lagging effect on inflation is dangerous as it may mean that the US overshoots on CPI before they know what is happening. But as is the nature of inflation, most central bank moves to contain it are reactive not proactive

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