Fed's Bullard expects US inflation to move above 2% in 2015

FXStreet (Łódź) - St. Louis Fed President James Bullard said on Thursday that he believed US inflation was currently "turning around" and that next year it would most probably exceed the 2% target level, prompting a discussion on interest rates at the Federal Reserve.

Bullard expressed satisfaction with the improvements on the US labor market, suggesting that they had accelerated since the introduction of QE3. He also said that the Q1 GDP reading on Wednesday which revealed a 2.9% drop, was an "aberration."

The Fed head assured that he "doesn't see a bubble anywhere in the economy," but that the central bank would carefully monitor the developments on the US housing market.

EUR/USD weighed by ECB story

The EUR/USD broke below the 1.3600 mark and accelerated to fresh 3-day lows at the beginning of the American session, weighed by a story suggesting the ECB may not have reached lower bound on rates.
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