Does Low Inflation Justify a Zero Policy Rate?
November 14, 2014
St. Louis Fed President James Bullard discussed whether current macroeconomic data can rationalize the exceptionally low setting for the policy rate. During an event in St. Louis, he said that inflation at the current level is not enough to justify remaining at the zero lower bound. He added that low inflation can justify a policy rate somewhat lower than normal, but not zero.
Presentation (pdf) | Press Release
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- St. Louis Fed's Bullard: Sees 1Q 2015 As Best Time For Liftoff, by David Nicklaus, Market News International.
- Fed's Bullard says U.S. inflation fails to justify near-zero rates, by Michael Flaherty, Reuters.
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