Fed’s Bullard: ‘Considerable distance’ before first rate increase

Fed’s Bullard:

  • First rate rise ‘still a considerable distance away’
  • US agriculture land prices have plateaued due in part to softer commodity prices
  • Severe weather has ‘fouled up’ industries such as transportation in recent months, according to anecdotes
  • FOMC not yet decided its operating procedure once balance sheet returns to normal size
  • FOMC needs to address whether reverse repos will be part of normalization process
  • says real interest rates will continue to be low for some time to come

Headlines from Bullard crossing the wires now, he spoke earlier: Bullard says Fed closer to normal monetary policy

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