Speaking on Bloomberg Radio to Kathleen Hays this morning, outspoken St.Louis Fed chair James Bullard dropped two somewhat shocking reality-check tape-bombs… that we are sure will quickly be rescinded and translated for the hard-of-understanding…
First, Bullard was aksed about concerns over a US economic recession. He began with the 'standard' response of any establishment type:
"I don't see any recession on the horizon."
But then, something got hold of him and he uttered the following omnipotence-threatening phrase…
"But you never know."
But, we thought you are supposed to know? Besides, aren't you and your cohorts responsible for pulling the strings of the centrally planned state?
While notable, howevever, it was his second 'oops' that shocked many.
Reflecting on the impact of unwinding The Fed's balance sheet, noting that it's effect was "almost nothing," Bullard decided to add the following:
"The Fed has been reluctant to target equity prices."
Which is a very different phrase from the usual utter denial from Janet Yellen or anyone else.
Did Bullard just admit that The Fed does 'tinker' with stocks… but reluctantly? Is this confirmation that like SNB, PBOC, and BOJ, The Fed manipulates the US stock market?
We're sure we'll never know, as if his comments are picked up by any other than the alternative media, it will be rapidly translated into doublespeak that confirms it means nothing.
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And finally, as a bonus, Bullard admitted that "The Fed's inflation and growth 'misses' add up… and undercut credibility."
Which raises a simple question – what credibility?