Salient to Investors:

James Bullard at FRB St. Louis said the Fed should not taper until inflation accelerates toward its 2 percent target, and if inflation were to fall further it would have to rethink its strategy.  Bullard says positive indicators include improving real-estate markets, rallying equity markets, a subdued European sovereign debt crisis, less US fiscal brinksmanship, and improving household financial balance sheets. Bullard said asset price bubbles such as the mid-2000s housing bubble have become absolutely a front and center issue.

John Williams at FRB San Francisco says we need more accommodation because of the inflation data, but expects inflation to accelerate in the next several quarters.

Charles Plosser at FRB Philadelphia says the Fed should begin taper in September and end QE by year-end.

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