US Bond Market Week in Review: Bullard Gets it Right

            Bullard is one of the Fed’s most original thinkers.  He recently proposed a new interest rate regime that, instead of focusing on models, uses a very intuitive decision tree to determine if raising rates is appropriate.  He gave a speech at the end of last week that asked three questions: would the US see GDP growth greater than 2% in the coming year, would inflation hit the Fed’s 2% inflation target, and would wages increase as unemployment decreases.  His answer to all three was, “Probably not.”  But unlike other Fed governors, he relies on incoming data rat