Fed's Bullard says growth will probably accelerate this year

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U.S. stocks rose, with the Standard & Poor’s 500 Index up less than 0.1% to 1,520.38 at 1:27 p.m. in New York. The 10-year Treasury note yield increased four basis points, or 0.04 percentage point, to 2.01%.

The U.S. elections last year cleared up some uncertainty, with fiscal concerns “partially resolved,” he said. Also, the European Central Bank’s commitment to stimulate regional growth has improved Europe’s outlook.

“While 2012 was marked by a clear downshift in Euro-area economic growth, 2013 will likely see either a stabilization or some recovery,” he said. “In this sense the uncertainty concerning the European outlook has been reduced.”

“Emerging-market economies slowed during 2012, in part due to the European recession, but these economies are now expected to fare better in 2013,” Bullard said. China’s economic growth recently has been “stronger,” he said.

The central bank in September started a third round of asset purchases and expanded it in December, saying the quantitative easing will continue until the labor market is improving “substantially.”

Bullard joined the St. Louis Fed’s research department in 1990 and became president of the regional bank in 2008. His district includes all of Arkansas and parts of Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee.

Bloomberg News

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