“The First Steps toward Disinflation” (Presented in Barcelona)
June 20, 2022
Inflation in the U.S. is comparable to 1970s levels, and U.S. inflation expectations could become unmoored without credible Fed action, St. Louis Fed President Jim Bullard said during a presentation in Barcelona, Spain. He noted that the Fed has reacted by taking important first steps to return inflation to the 2% target and that U.S. market interest rates have increased substantially, partially in response to promised Fed action.
Bullard delivered a similar presentation to the Economic Club of Memphis on June 1.