Bullard Speaks about U.S. Monetary Policy with Bloomberg Daybreak: Australia
October 8, 2018
St. Louis Fed President James Bullard said the U.S. economy is growing quite rapidly right now, but he expects that growth to slow beginning next year as the effects of the fiscal stimulus wear off. Regarding U.S. monetary policy, he noted in an interview with Bloomberg TV that he thinks the policy rate is close to neutral today.
“We’re at a good level of rates today for our environment today. We don’t have to be projecting planned rate hikes at this point. We can react to data as it comes in,” Bullard said. “I don’t think it’s a situation where we need to get a lot higher with the policy rate in order to contain inflation because there just isn’t that much inflation pressure in the U.S. economy,” he said.
He also shared his views about current trade issues, the Fed’s balance sheet and the yield curve.
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