Fed's Bullard: Inflation expectations are moving higher

Coronavirus vaccines mean that the health crisis is expected to wane in the months ahead, St. Louis Federal Reserve President James Bullard said on Thursday, as reported by Reuters.

Additional takeaways

"Seeing continued economic recovery in the US in the first half of 2021."

"US fiscal, monetary policies have been exceptionally effective, designed for a larger shock than the one that has occurred."

"US labour market recovery is four years ahead of the pace after the last recession."

"Inflation expectations are moving higher."

"Some downside risk to economic outlook remains."

Market reaction

The US Dollar Index showed no immediate reaction to these remarks and was last seen gaining 0.37% on a daily basis at 89.87.