A Conversation with St. Louis Fed President James Bullard: Risks to the Fed's Pause Policy

May 15, 2012

President Bullard explains that the main risk to the Fed's pause policy is that the FOMC will, as it has in the past, overcommit to the ultra-easy policy, which could reignite the global inflation debacle of the 1970s. He also explores why it may be better to focus on labor market policies to directly address unemployment instead of taking further risks with monetary policy. He explains how the near-zero rates cause other distortions in the economy, such as punishing savers.

Presentation: "The Fed on Pause"

Part 1: Welcoming Remarks, Maria Hampton (6:15)

Part 2: The Fed on Pause (9:05)

Part 4: Fed Communications (8:38)

Part 5: Question-and-Answer Session, Part I (12:46)

Part 6: Question-and-Answer Session, Part II (11:29)

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This popular lecture series addresses key issues and provides the opportunity to ask questions of Fed experts. Views expressed are not necessarily those of the St. Louis Fed or Federal Reserve System.

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