Hey, Jim, too, too late

Bullard in an interview:

Bullard: Yes, if there were a really big shock, then we would have to lower rates down to zero, and we’d have to consider unconventional monetary policy again. But I don’t think that’s the situation we’re in right now. What we have now is just a pretty good overall performance of the U.S. economy, certainly great labor markets, good consumption growth. We’ve got some sectors in industrial and agriculture that maybe aren’t doing very well, partly because of the trade war. We’ve got slowing global growth. So we’ve got some downside risk in what is otherwise a high-performing economy. The idea here is to take insurance out against the idea that this downside risk manifests itself in much slower growth in 2020.

Well, Jim, your prediction is true.

It looks like we are adding another quarter trillion to the balance sheet.  If we took your advice we would probably add a half trillion to keep the overnight rate down. We already are in the doldrums, I doubt the ten year yield will get higher than 2.5 for a very long time. We will be bouncing in and out of deflation, making Treasury debt payments very painful, and probably unsupportable.