Bullard said the SNB had its best intentions for the Swiss economy but didn’t have a data-dependent way to communicate to markets how they would exit the cap.
A note to Bullard: Pride comes before the fall
Other comments:
- Dollar not dominant factor for US decision making
- Door not completely closed to selling assets at some point
- Fed balance sheet shrinking relative to GDP
- US can do well with current trade-weighted dollar
I think the Fed (and the US economy) is going to be in a tough spot if EUR/USD falls to parity, USD/JPY goes to 140 and USD/CAD goes to 1.30. That’s a big hit to competitiveness.
