Fed’s Bullard Says Brexit to Have ‘Close to Zero’ U.S. Impact

[Purveyor]

Federal Reserve Bank of St. Louis President James Bullard said he thought the U.K.’s vote to leave the European Union wouldn’t have a lasting effect on the U.S. economy, joining Cleveland Fed chief Loretta Mester in playing down the threat Brexit poses to the U.S.

“Now that the markets have had some chance to digest the move, I think the ultimate impact on the U.S. economy will be close to zero,” Bullard told reporters Tuesday following a speech in St. Louis.

Mester, who like Bullard is a voter this year on the policy-setting Federal Open Market Committee, earlier told reporters in Sydney that due to the relatively closed nature of the U.S. in terms of its reliance on exports “I don’t expect it to be a big effect on our economy.” Officials will keep Brexit in sight as they weigh the U.S. outlook., she said.

Fed officials are expected to review the implications of the U.K. decision when they next meet on July 26-27, together with data that showed a sharp rebound in U.S. payrolls last month after a disappointing performance in May.

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http://www.bloomberg.com/news/articles/2016-07-12/fed-s-bullard-says-brexit-to-have-close-to-zero-u-s-impact

[liberal N proud]

1. But it already has

When stocks dropped following the vote, 401 plans and other market related finances were hit.

[safeinOhio]

2. My (little) portfolio

Is up.

[liberal N proud]

3. Those who had the luxury of sitting on probably will be ok.

If someone had initiated a sale and were committed, they took a hit.

[safeinOhio]

4. S&P and the DOW finished the day in record territory.

I only buy high quality, high dividend stocks. Interest rates go down, my stocks go up. My broker called to congratulate me on my picks yesterday.

[liberal N proud]

5. Good for you

[safeinOhio]

6. Great for me today

But we will see about tomorrow. 😬

[Buzz cook]

7. It is possible that British goods will be cheaper and

American goods might be less expensive for British consumers. That is relative to mainland European goods.

Depends Brexit still isn't a sure thing and if it is, it'll take a while to see how it shapes out.

[StoneCarver]

8. They fail to mention

this is likely the beginning of the end for the EU. It was a great idea, but pragmatically unworkable. If/when the EU falls apart, it will have dramatic consequences for the US economy. The latest stock rally is just a head fake, because there's still more sheep to be sheered.
Stonecarver