March 5, 2021
St. Louis Fed President James Bullard shared his views on monetary policy and various aspects of the U.S. economy during an interview with Jeremy Siegel and Jeremy Schwartz on Behind the Markets, a Business Radio program from the Wharton School.
Regarding monetary policy, Bullard said that the Federal Open Market Committee has the right policy in place today, and that the Fed’s policy response during the pandemic has been quite good.
He noted that the forecasts for the U.S. economy have become very strong. He also discussed the potential for higher inflation, noting that three theories about what causes inflation are all pointing in that direction. On rising Treasury yields, he said it’s natural for the 10-year Treasury yield to be moving higher as U.S. growth prospects are improving and inflation risk has moved up.
During the interview, Bullard also discussed the fiscal policy response during the pandemic, his macroeconomic forecasts for the end of 2021, debt-to-GDP ratios and factors that may affect how much countries might be able to borrow on international markets.
This content originally aired on Wharton Business Radio, Channel 132 on SiriusXM.