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U.S. financial outlook mostly good, growth could outpace China: Fed's Bullard

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WASHINGTON (Reuters) - Financial conditions in the United States were “generally good” right now, with the potential for its economic growth to outpace China, St. Louis Fed president James Bullard said on Tuesday as the country heads into its second year of the COVID-19 pandemic.

In an interview on CNBC, Bullard said U.S. inflation was in “good shape ... right now” and would likely move up this year, something the Fed would take “on board.”

As U.S. health officials move to inoculate the population against the coronavirus, the country has moved on from the kind of panic situation it faced last spring and could see a “roaring” economy as it emerges from the pandemic, he said.

On bitcoin, which vaulted above $50,000 for the first time on Tuesday, Bullard said the cryptocurrency’s price did not affect Fed policy.

Bullard also noted recent volatility in the markets with GameStop and other equities but said it appeared to be normal trading, not a bubble, telling CNBC: “You do see speculative frenzies from time to time in markets, and that’s part of the process.”

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He is trying to stir up the animal spirit, an important part of Modern Monetary Theory. There is nothing new about what he said but it is in his title that sounds more persuasive than  journalists expert or op-ed on mainstream. Personally I think besides common CPI (rent, utility, food etc.) and maybe commodities, the stock, house price, bitcoin price are bubble, speculative only as they are afraid of high inflation.

Gold is USD enemy so they would never let it soars too high and price got affected from paper trading especially this sensitive time. IMHO, MMT is some big theory just for people to still believe in USD after that much money printing and fiscal spending since covid19 while the whole output are down with lots of unemployments. 

Exporting countries cannot afford their exchange rates getting stronger especially this time so I guess they will print money too or facing trade deficit and thats why the exchange rates don't change much but surely it is inflation in bubble but  not the CPI. Fiat currency in politicians mindset  is all about gold price and CPI to keep their seats and blame everyone else but themselves. 

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