The Path Forward for U.S. Monetary Policy

June 23, 2017

In Nashville, Tenn., St. Louis Fed President James Bullard said the Fed can wait and see how the economy develops before making any further adjustments to the policy rate. He noted that the U.S. effective federal funds rate has been rising while key policy rates abroad have remained fixed. The global growth outlook has improved since last year, he said, but upgrades to the outlooks in key countries “are too small and too uncertain” to meaningfully impact the U.S. He said the domestic economy remains in a “regime” of low growth, low inflation and low interest rates. Bullard spoke at the annual conference of the Illinois Bankers Association.