March 24, 2017
In an address to the Economic Club of Memphis, St. Louis Fed President James Bullard discussed the current “regime” of low real GDP growth and low real interest rates on short-term government debt. Given that this regime is unlikely to change dramatically during 2017, he said that the federal funds rate target can remain relatively low and still keep inflation and unemployment near goal values. He also discussed the possible impact of the new fiscal policy on this regime, noting that the Fed can wait to see how fiscal policy develops. Regarding the Fed’s balance sheet, he said that now may be a good time for the Federal Open Market Committee (FOMC) to consider allowing the balance sheet to normalize by ending reinvestment.
His presentation, titled “Current Monetary Policy, the New Fiscal Policy and the Fed’s Balance Sheet,” was part of a multistop visit to eastern Arkansas and Memphis, Tenn., all in the St. Louis Fed’s District. During the three days, he met with a variety of business leaders and other audiences.
President and Chief Executive Officer
Executive Assistant to the President
Senior Vice President and Chief of Staff to the President
Cletus C. Coughlin
Senior Economist and Special Assistant to the President
"Rationally, let it be said in a whisper, experience is certainly worth more than theory."