Posts Tagged ‘St. Louis’

Notes From Underground: GDP reports of the North-U.S. and Canada

October 28, 2010

Friday morning we will get the third-quarter GDP reports from the U.S. and Canada, both coming out at 7:30 a.m. CST. The U.S. is looking for growth of 2.1 percent and it will give us a good look to see if there was enough growth to support the equity rally and corporate profit picture we have seen this quarter. A bigger number may give the FED the cover to proceed down a less robust QE path and push out a liquidity addition on a glide path that was proposed by ST.LOUIS FED President James Bullard.


Notes From Underground: St.Louis Federal Reserve President gave the market the Blues

July 30, 2010

St. Louis Fed President James Bullard ¬†warned that the U.S. was closer to mimicing the Japanese situation now than at any other time in recent history. Bullard, who has been a noted hawk, surprised the market with the vibrancy of his rhetoric about a possible renewed downturn. He said if there is a negative shock to the economy the FED should expand the quantitative easing program or cut the interest rates of reserves that the FED pays. Bullard’s statement initially sent the S&Ps and Dow lower as the market s became very concerned that a noted inflation hawk had lost his talons.

“The most likely possibility from where we sit today is that the recovery will continue through the fall, inflation will start to move up and this issue will all go away … Suppose we get another negative shock ,another surprise. We have to be prepared in that event to have a plan in place to do something.”