User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday July 30, 2010 - 12:41:14 GMT
Foreign Exchange Analytics -

Share This Story:
| | Email

Bullard Wanders way off Fed Reservation and onto CNBC Set

Bullard Wanders way off Fed Reservation and onto CNBC Set


This is not your father’s Fed where transparency in policy had one meaning – film used for overhead projectors during seminars.


On Thursday the St Louis Fed President, known as an inflation hawk, warned of a Japan style deflation, lost decade and called for contingency plans for nipping this risk in the bud.  The remarks saw stocks sag and bonds rally (with a lag) and even had renowned Fed watcher and former Fed Governor Meyer tell the NY Times that Bullard’s remarks mark a significant shift at the Fed -  “This is very significant. He has been one of the most hawkish members, but he is now calling for the Fed to ease aggressively.”


Sorry but this is summer and news is well in short supply.  The NY Times ran Bullard on its early edition front page.  Even financial TV was caught up in the Bullard blizzard debating whether his remarks moved markets. 


Bullard is not one markets normally associate with leading thinking at the Fed.  Indeed I can’t remember when (in 25 years) the last time a District Fed President was key in shaping monetary policy – perhaps NY Fed President Corrigan was the last.  So time out please.  Bullard may have turned in his hawk union card for the dove card but who really cares unless the Board is on board.  And this is not especially clear right now, especially when it comes to his main point which is to drop the pledge to keep rates low for an extended period.  His point was that this was adding to deflationary expectations when the purpose is to boost inflationary expectations (multi-equilibria outcome).  He drew on (monetary) economic theory that argues when the zero bound (interest rate) is reached, having an interest rate-based monetary policy is pointless and contributes to a Japan-like outcome, depressing household and firm expectations about future prices and economic activity.  Mind you Bullard, a current voting member of the FOMC, has not dissented to end the low rate language pledge despite Hoenig’s dissent (albeit for a very different reason…Tom sees only inflation nails with his hammer).  Bullard said he does not dissent to adhere to the tradition of consensus and support for the Chairman.  So some traditions die hard.


Bullard’s case for the deflation risk being greater than inflation risk is clearly more prescient for markets than his point on policy theory.  Here the Fed is split…well sort of.  The reality is that a clear majority of the FOMC are now worried more about deflation than inflation.  If that were not the case than the FOMC statements and minutes would have already dropped the pledge to keep rates low and surely Bernanke would not have chosen to describe the current environment as unusually uncertain.  So Bullard’s point on the deflation risk is to have an explicit contingency plan in place to address the risk if there is an additional shock to the economy (like the EZ sovereign debt crisis, another banking crisis or a terrorist attack).  Bullard was saying the Fed does not have a plan B ready to go, just a general outline of options (which Bernanke has identified on several occasions recently – see H-H testimony in Congress earlier this month).  Bullard seems to have zeroed in on buying more US Treasuries (like the BOE which focused on buying Gilts, not ABS as the Fed did). 


I suspect the FOMC majority agrees on deflation is public enemy number one but disagrees on how to address it, in the event that the economy slows more and the risk rises…which appears to be happening since May. 


In a summer market starved of news, Bullard has moved from obscurity to prime time.  The question I have is whether Bullard’s PR plan is more an anomaly or a look at the future…open debates of Fed policy…post FOMC meeting press conferences…televised FOMC meetings?  In other words the Fed now has to deal with how much transparency is too much.  Bullard is clearly testing the waters.  And he has put himself on the map as a result.  But le’s not forget policy at the Fed is still largely shaped at the Board and remarks from Bullard are only significant in the context of what they tell us about the Board’s view (not unified for sure – Warsh seems to be opposed to more QE and sees inflation as public enemy number one) and what if any guidance the remarks prompt from the center. 


But the likes of the NY Times and Larry Meyer, in a summer market devoid of Fed news,  seem to have caught a long pass and run to the wrong end zone on this news story.


David Gilmore




Forex Trading News

Forex Research

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."

Actionable trading levels delivered to YOUR charts in real-time.

Register To Test Your Amazing Trader

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Tue 31 July 2018
AA JP- Bank of Japan
A 06:00 DE- Retail Sales
A 09:00 EZ- flash HICP/GDP
AA 12:30 US- Core PCE Deflator
A 14:00 US- CB Consumer Confidence
Wed 1 Aug 2018
A Final Mfg PMIs
AA 12:15 US- ADP Private Payrolls
A 15:00 US- EIA Crude
AA 18:00 US- Federal Reserve Decision
Thu 2 Aug 2018
AA 11:00 GB- Bank of England Decision
A 13:30 US- Weekly Jobless
Fri 3 Aug 2018
A Final Services PMIs
AA 12:30 US- Employment
A 12:30 US/CA- Trade

John M. Bland, MBA
co-founding Partner,

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube

Max McKegg's Daily Forex Trading Forecasts

Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.

Request a TRIAL of Max's Forex Service.


Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Open Forum
Futures Forum
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Online Forex Trading
Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
Forex Products
GVI Forex
Free Trials
FX Bookstore
FX Jobs and Careers
Jobs USA
Jobs UK
Jobs Canada

Forex Forum

The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.

Forex News

The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.

Currency Trading

Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by

Forex Brokers

The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.

Forex Trading

Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.

FX Trading

Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.

Forex Blog also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.



By using this website, you are agreeing to our Privacy Policy and Terms of Use, and Cookie Policy

Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105